New EU Cryptocurrency Tax Rules from 2026

Check your account settings and prepare for reporting — data collection is already underway as of January 1, 2026.

How does the DAC8 directive change things for crypto exchange users?

DAC8 came into effect on January 1, 2026 and requires all European crypto exchanges to automatically share user data with tax authorities. This works alongside MiCA and closes the "tax gap" — now crypto is as visible to tax authorities as a bank account.

MiCA sets a July 1, 2026 deadline for full licensing of crypto platforms in the EU, but DAC8 has different key dates: exchanges began collecting data on January 1, 2026 and will submit their first reports to tax authorities for 2026 by September 30, 2027. If you don't provide your tax number and country of residence within 60 days after two reminders, the exchange will restrict account operations until the issue is resolved.

Key takeaway: DAC8 makes crypto operations transparent to the state, just like bank transfers.

What data will exchanges share with tax authorities?

Personal data includes: full name, address, date of birth, tax number, country of residence.

Transaction data includes: operation type, date and time, amount in euros, type of cryptocurrency, wallet addresses.

Year-end balances — how much crypto is stored on the exchange on December 31.

Exchanges will submit their first report for 2026 in 2027 (by September 30), then annually thereafter.

Key takeaway: tax authorities will get the complete picture of your operations — from purchase to withdrawal.

Who does the DAC8 directive affect?

It affects all users of crypto services registered in the EU — Binance Europe, Coinbase, Kraken, Bitpanda regardless of transaction amounts.

It affects EU residents, even if the exchange is outside the EU but serves European clients.

DAC8 doesn't cover operations WITHIN non-custodial wallets (MetaMask, Ledger, Trezor, DeFi protocols) and direct P2P transactions between individuals. However, transfers FROM exchanges TO such wallets are included in reporting: the exchange shares the recipient address, amount, and withdrawal date.

For post-Soviet countries: if a resident of Kazakhstan, Ukraine, or Georgia uses European exchanges — data is shared when tax information exchange agreements exist (CRS/CARF and bilateral agreements).

Key takeaway: if you trade on a European exchange — your data goes to tax authorities, including withdrawals to cold wallets.

What do you need to know about tax residency verification?

Exchanges must confirm tax residency — typically the country where you live more than 183 days per year.

They may request: tax number (in Germany — Steuer-ID, in France — numéro fiscal, in Poland — NIP), address confirmation (usually a recent address document, requirements depend on the exchange and local AML/KYC).

If you've already completed KYC — you likely won't need additional documents. Check your settings in the "Tax information" or "Residency" section.

If you don't provide data (tax number and residency) within 60 days after two official requests — the exchange will restrict account functions (withdrawal and trading) until the issue is resolved.

Key takeaway: check the accuracy of your country of residence and tax number in your exchange profile as early as possible.

How to properly declare cryptocurrency income?

DAC8 is only data sharing — the obligation to declare income and pay taxes remains yours.

In most EU countries, you need to declare income from crypto sales — if you sold for more than you bought, that's taxable profit.

Simply holding crypto is usually not taxed until you sell or exchange it for another cryptocurrency.

Tax authorities now see operations automatically — if you don't declare profit from sales, you may face questions, additional tax assessments, penalties, and fines.

Recommendation: consult with a tax advisor or use tools for automatic profit tracking on exchanges.

Key takeaway: automatic data sharing doesn't exempt you from independently declaring profits.

How to prepare for new DAC8 requirements?

Step 1: Check account settings on all exchanges — go to "Profile" → "Tax Information", ensure your country of residence and tax number are correct.

Step 2: If an exchange requests documents — provide them as quickly as possible. You typically have up to 60 days (including two reminders), but don't delay.

Step 3: Collect transaction history for 2025–2026 — download CSV reports from the "Transaction History" or "Tax Reports" section.

Step 4: Study crypto tax rules in your country — search "crypto tax [your country]" or consult an advisor.

Step 5: If you store crypto on an exchange without plans to sell — consider transferring to a non-custodial wallet for more controlled storage. Remember that the withdrawal from the exchange will be reflected in the report, but subsequent on-chain operations in the wallet don't fall under DAC8.

Key takeaway: preparing in advance will save you from account freezing issues and tax authority questions.

What mistakes should you avoid when dealing with DAC8?

Mistake 1: Indicating the wrong country of residence instead of where you live more than 183 days. Consequence: data goes to the wrong tax authority, possible inquiries and disputes. Correct approach: indicate your actual country of residence and real tax residency.

Mistake 2: Ignoring exchange requests for documents. Consequence: account freeze after the deadline expires (up to 60 days including reminders). Correct approach: respond within 7–14 days to the first request.

Mistake 3: Thinking that crypto-to-crypto exchanges aren't taxable. Consequence: in many EU countries, exchanging BTC for ETH is a taxable event. Correct approach: track all operations, including crypto-to-crypto.

Mistake 4: Not declaring income, hoping tax authorities won't know. Consequence: with DAC8, tax authorities learn automatically and will assess additional tax, penalties, and fines (amounts depend on the country and can be significant). Correct approach: declare all profitable operations.

Key takeaway: common mistakes lead to fines that are easily avoided with proper preparation.

FAQ

Can I lose money because of DAC8?
No. DAC8 is only data sharing, not automatic fund deduction.

What happens if I don't update my exchange data?
They'll restrict account functions — prohibit withdrawal and trading after you fail to respond to requests within the established timeframe (up to 60 days including reminders).

Do I need to pay tax if I only bought crypto and hold it?
No. Tax is paid when selling at a profit or exchanging for another cryptocurrency (in most EU countries).

Will tax authorities see my operations on non-custodial wallets (MetaMask, Ledger)?
No, operations WITHIN wallets aren't visible to DAC8. But withdrawals FROM exchanges TO such wallets are included in reports (address, amount, date), and tax authorities know you have these assets.

Can I use a European exchange if I live in CIS countries?
Yes. After completing KYC and confirming residency, access remains, but tax information exchange depends on your country's agreements with the EU (CRS/CARF and bilateral treaties).

What if an exchange requests a tax number but I don't have one?
Contact exchange support. In some cases, you can provide alternative residency confirmation documents and obtain a TIN from your local tax authority.

Is it even legal to own crypto in the EU after DAC8?
Yes. DAC8 doesn't ban crypto, it only requires transparency for taxation.

Conclusion

DAC8 makes cryptocurrency as transparent to tax authorities as a bank account — these are new rules of the game, not a ban. Check your exchange data in advance, track your operations, and declare profits — this way you'll minimize the risk of fines and blocks. Better to spend €50–100 on consultation than face additional assessments and sanctions later.

*Disclaimer: This article is for informational purposes only and is not a financial recommendation. Cryptocurrency investments carry high risks. Always conduct your own research and consult with financial advisors before making investment decisions.