EU's New Tax Directive 'DAC8' Takes Effect, Raising Concerns Over Cryptocurrency Transaction Data Sharing and Privacy

The European Union's (EU) latest tax transparency directive for cryptocurrencies, known as 'DAC8', officially came into effect on January 1, 2026. DAC, which stands for Directive on Administrative Cooperation, facilitates the exchange of tax information among EU member states and strengthens the framework for tax cooperation. DAC8, the eighth iteration of this directive, marks the first time that the scope of automatic information exchange has been extended to include cryptocurrencies. The directive mandates that reported cryptocurrency service providers (RCASPs) share the information obtained from them, including taxpayer and investor residency data, with EU member states annually. This information encompasses user details, remittances, transactions, swaps, and more.