Why new crypto rules are being introduced
In recent years, cryptocurrencies have gained significant importance. Many investors now regularly invest in Bitcoin, Ethereum, or other digital assets. At the same idealistic time, the crypto market has evolved into a global ecosystem where transactions can be processed via exchanges all over the world.
However, it has often been difficult for tax authorities to keep track of these activities. While traditional financial assets—such as bank accounts or securities accounts—have been subject to automatic reporting requirements for years, comparable systems for cryptocurrencies did not exist for a long time.
This is precisely where the new regulations come in. The goal is to create more transparency and ensure that tax-relevant profits from cryptocurrencies can be accurately recorded.
What specifically changes with DAC8
The European DAC8 directive extends the existing regulations on the automatic exchange of information between tax authorities to the field of cryptocurrencies.
Since January 1, 2026 crypto service providers are required to collect certain information about their users and report it to tax authorities.
This involves in particular data such as:
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Name and address of the user
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Tax identification number
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Cryptocurrency holdings on the platform
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Purchases and sales of crypto assets
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Cryptocurrency-to-cryptocurrency trades
The reported information is first transmitted to the tax authority of the respective country. Subsequently, an automatic exchange takes place between the EU member states so that cross-border activities can also be tracked.
The first reports are expected to be made in 2027 and will relate to transactions from the 2026 tax year.
Which providers are affected by the reporting obligations
The new regulations are primarily aimed at companies that offer services related to cryptocurrencies. These include, for example:
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Crypto exchanges and trading platforms
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Brokers that facilitate the buying and selling of cryptocurrencies
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Wallet service providers
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Companies that custody cryptocurrencies for their clients
These providers will in future be obliged to collect and report relevant information about their users. It is particularly important that the regulations do not only apply to companies within the EU. Platforms outside Europe can also be affected if they offer their services to European users. This is intended to prevent investors from simply switching to foreign platforms in order to circumvent reporting obligations.
What this means for crypto investors
For investors, this development brings one thing above all: the crypto market is becoming more transparent and more heavily regulated.
In practice, this means that tax authorities will receive significantly more information about cryptocurrency transactions in the future. As a result, profits from trading cryptocurrencies can be tracked more easily than before.
While investors previously often had to document and declare their transactions themselves, tax authorities will in future receive additional data directly from the platforms in many cases. Discrepancies between reported data and the income declared in the tax return will thus be easier to detect. Incomplete or missing information in the tax return therefore poses a risk of financial criminal law consequences.
Why good documentation is becoming increasingly important
Especially in the crypto sector, the tax processing of transactions can be very complex. Many investors use multiple exchanges, move their cryptocurrencies between different wallets, or participate in new forms of crypto investments.
This includes, for example:
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Staking
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DeFi protocols
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NFT trading
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Lending or Liquidity Pools
These activities can have different tax implications and are often difficult to trace—especially when transactions are spread across multiple platforms or wallets. However, an accurate and complete declaration of income is essential to avoid potential penalties.
Therefore, the clear and comprehensible documentation of all transactions will become even more important in the future.
How we support investors in this area
With the increasing regulation of the crypto market, the need for legal and tax support is also growing. Many investors face the challenge of correctly preparing their transactions or clarifying their tax situation.
We support our clients – together with experienced tax advisors – among other things with:
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the analysis and processing of crypto transactions
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the creation of comprehensible transaction summaries
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proof of origin of funds for banks or authorities
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the legal classification of complex crypto activities
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the review of the tax situation of your crypto portfolio
Those who ensure transparency early on and keep an eye on their tax situation can prepare well for the upcoming changes. For individual advice, you are welcome to Roman Taudes and Anela Blöch at the phone number 01 3912345 or by email office@atb.law happy to help.
