Cryptoassets regulation moves forward in Europe.
The eighth version of the Directive on Administrative Cooperation (DAC8) was adopted last October 17 by the Council of the European Union. Its entry into force will await publication in the Official Journal of the EU.
Adopted following the enactment of MiCA in May this year, DAC8 will confer sufficient jurisdiction on tax collectors to exercise financial supervision and assessment of cryptocurrency transactions undertaken by both individuals and entities within any Member State in the EU space. Specifically, notes the press release issued by the Council,
The amendments mainly concern the reporting and automatic exchange of information on revenues from transactions in crypto-assets and on advance tax rulings for the wealthiest (high-net-worth) individuals.
In addition, the Directive will apply to other categories of assets and income, such as cryptoassets.
So far, the decentralised nature of crypto-assets has made it difficult for member states’ tax administrations to ensure tax compliance. The inherent cross-border nature of crypto-assets requires strong international administrative cooperation to ensure effective tax collection.
Indeed, it is a very valuable step in the regulation of this matter in line with the very requirements that the crypto market seems to be leading to. Currently, the DAC8 complies with the Crypto Assets Reporting Framework (CARF) and the regulations that concern it under the MiCA, in particular those that focus on crypto-asset transactions within the European Union.
In the September vote in the European Parliament for its adoption, the Directive in question received overwhelming support, with 535 votes in favor and only 57 against.
Meanwhile, in the United States, regulators are pushing for crypto-tax collection procedures to be implemented. Last October 11, seven senators called on the Treasury Department and the Internal Revenue Service to promptly propose a regulation requiring some tax reporting requirement for crypto-brokers. In addition, the senators criticized the two-year delay in the implementation of the cryptocurrency tax reporting requirements, which are expected to go into effect in 2026 to fall on transactions occurring in 2025.