EU Takes Action on Crypto Tax Transparency
The European Commission has escalated its push for financial transparency in the digital asset space, formally calling on a dozen member states to fully implement new cryptocurrency tax reporting rules. This move underscores the bloc’s commitment to closing potential loopholes and ensuring a coordinated approach to taxing crypto-assets across its single market.
The DAC8 Directive: A New Standard for Reporting
At the heart of this action is the Directive on Administrative Cooperation in the field of taxation (DAC8), a key piece of EU legislation. Adopted in late 2023, DAC8 extends existing tax reporting requirements to cover transactions involving crypto-assets. The rules mandate that crypto-asset service providers, including exchanges and wallet providers, collect and report detailed information on their EU-based clients’ transactions to national tax authorities. This data is then automatically exchanged between member states, giving tax agencies a clearer picture of citizens’ crypto holdings and capital gains.
The Commission has now sent formal letters of notice to 12 countries that have missed the December 31, 2025, deadline to transpose these rules into their national law. While the specific nations were not named in the initial report, this “infringement procedure” is a standard first step in EU enforcement, giving countries two months to respond and address the shortcomings.
Hungary Faces Separate Scrutiny Over MiCA
In a related but separate development, the Commission also singled out Hungary for non-compliance, this time concerning the landmark Markets in Crypto-Assets (MiCA) regulation. The issue stems from a recent amendment to Hungarian national law that, according to the EU executive, creates a conflict with the harmonized MiCA framework.
MiCA is designed to create a consistent regulatory rulebook for crypto-asset service providers across the EU, ensuring consumer protection and market integrity. By passing legislation that deviates from these agreed-upon standards, Hungary risks creating fragmentation within the single market. The Commission has requested Hungary to align its national rules with MiCA, initiating a parallel infringement procedure.
What This Means for the Crypto Landscape in Europe
These twin actions signal a maturing regulatory phase for cryptocurrencies in Europe. The push for DAC8 implementation highlights a clear priority: ensuring crypto profits are not used to evade taxation. For users, this means increased reporting and less anonymity for transactions conducted through regulated platforms.
Simultaneously, the warning to Hungary over MiCA underscores the EU’s determination to prevent a patchwork of national rules that could undermine the regulation’s core purpose. The goal is a level playing field where crypto companies can operate across borders under a single set of clear rules, and consumers enjoy consistent protections regardless of their location.
As the deadlines pass and enforcement actions begin, the coming months will be crucial in shaping a fully integrated and compliant European crypto economy. Both traditional tax authorities and new crypto-focused regulators are set to gain powerful tools for oversight.
