EU's New Crypto Rules: What You Need to Know
European UnionThu Jan 08 2026
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Starting in 2026, crypto companies in the EU will begin gathering tax details from users. This is part of the EU's DAC8 rules. Many people think this means the end of crypto privacy. But that's not quite true.
The EU set January 1, 2026, as the start date for data collection. However, the first full reports won't be due until September 2027. So, 2026 is more about setting up systems and collecting data. Big changes in enforcement will likely come later, when reports can be compared across countries.
DAC8 affects crypto service providers and their EU users. It covers crypto-to-fiat exchanges, crypto-to-crypto exchanges, and even withdrawals to personal wallets. This means that even if you move your crypto to a personal wallet, the exchange will still report it.
Some people think providers will send all user transaction history to tax authorities. But that's not accurate. Reports are annual and include aggregated data. The main change is that the information trail doesn't end when you withdraw to a personal wallet.
The biggest impact of DAC8 will be on user onboarding. Providers must collect tax identification numbers. If users don't provide this, they won't be able to do certain transactions after two reminders and 60 days. This could disrupt trading and withdrawals.
For crypto platforms, DAC8 means higher costs and stricter rules. Smaller providers might struggle with these costs, while larger ones can spread them out. The rules also align with global trends, as many countries plan to start crypto data exchanges in 2027.
In short, DAC8 doesn't end crypto privacy but makes it harder to avoid reporting. It shifts the focus to onboarding and compliance, affecting both users and providers.
