The European Union Parliament adopts the DAC8 directive during its plenary session in Strasbourg, France. The aim would be to harmonize the crypto market within the European Union by supplementing already existing crypto regulations. Of course, this regulatory development will have significant consequences on the various players in the cryptocurrency market.
The European Parliament adopts the DAC8 directive on cryptocurrencies
September 13, 2023 marks a decisive turning point in crypto regulation in Europe. The Parliament of the European Union indeed adopted the DAC8 directive during its plenary session held in Strasbourg, France. The directive enjoyed massive support with:
- 535 members who voted for,
- 57 members who opposed it,
- 60 members who abstained from voting.
Also known as the “Administrative Cooperation Directive”, DAC8 reinforces other existing laws on cryptocurrencies. We cite in particular the MiCA regulation which particularly targets the cryptographic assets market. Added to this are anti-money laundering laws.
In reality, the DAC8 directive is mainly focused on the management and reporting of crypto assets within the EU.
What this means for the crypto market in Europe
DAC 8 will certainly bring changes within the cryptosphere. In accordance with the DAC8 directive, all transactions involving crypto assets must be reported. This includes :
- crypto/fiat transactions,
- crypto/crypto transactions,
- cryptocurrency transfers.
The statement will include details of the parties involved in the crypto transaction as well as information on the crypto assets used. This data will need to be provided before January 31 for transactions from the previous year.
Another key element of the DAC8 directive: all digital asset service providers (DASPs) based in a Member State of the European Union must obtain a compulsory license to comply. This crypto regulation applies even to unlicensed PSANs that provide services to EU consumers.
Aiming to strengthen the fight against crypto tax evasion, DAC8 will come into force in January 2026. The first reports and declarations will be collected from January 2027.
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