Cryptocurrency

During a plenary session in Strasbourg, France, on September 13, members of the European Parliament overwhelmingly supported the eighth version of the Directive on Administrative Cooperation (DAC8), a cryptocurrency tax reporting regulation. 
The session witnessed strong backing for DAC8, with 535 member votes in favor and only 57 against, along with 60 abstentions. 
DAC8, as outlined in European Union documents, is designed to equip tax authorities with the ability to monitor and assess all cryptocurrency transactions conducted by individuals or organizations within member states. 
The goal is to create a reporting framework that requires crypto-asset service providers to report transactions made by EU clients. This enhanced transparency aims to reduce the risk of tax fraud and evasion in the realm of crypto-assets. 
The recent plenary session vote represented the final step before DAC8’s passage. EU member states now have until December 31, 2025, to implement the rules, and the regulation will officially come into effect on January 1, 2026. 
It is worth noting that DAC was approved in May 2023 following the adoption of the Markets in Crypto-Assets (MiCA) legislation. 
The “8” in DAC8 signifies its eighth iteration, with each previous directive addressing different aspects of financial oversight. 
In its current form, DAC8 aligns with the Crypto-Asset Reporting Framework (CARF) and the provisions outlined in MiCA, ostensibly covering all cryptocurrency asset transactions within the EU. 
Some critics of DAC8 have argued that it lacks significant differentiation from CARF and diminishes the oversight authority of individual member states. 
Max Bernt, Chief Legal Officer at Blockpit, expressed concerns about the regulation, particularly regarding the obligation of reporting crypto asset service providers (RCASPs) to assess on a case-by-case basis whether a transferred crypto asset is reportable. 
He also raised concerns about potential “duplicate reporting” as lawmakers navigate existing regulations alongside those planned for implementation. 
The post <a rel="noopener noreferrer nofollow" href="https://www.unlock-bc.com/108310/eu-parliament-approves-dac8-cryptocurrency-tax-reporting-regulation/">EU Parliament Approves DAC8 Cryptocurrency Tax Reporting Regulation</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://www.unlock-bc.com">UNLOCK Blockchain</a>.

EU Parliament Approves DAC8 Cryptocurrency Tax Reporting Regulation

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