This DAC8 FAQ explains how the EU’s new crypto tax reporting rules work, what information will be reported, how it affects your tax return, and what you need to do as a user of our platform.
1. What is DAC8? (Definition)
DAC8 is the European Union’s new crypto tax transparency law.
It requires crypto-asset service providers (CASPs) – like Banxa and other exchanges, wallets, and platforms — to report user transaction data to EU tax authorities.
Banxa’s European entity, EU Internet Ventures B.V (EUIV), has regulatory approval under the European Union’s Markets in Crypto Assets (MiCA) framework, granted in the Netherlands, to operate as a Crypto Asset Service Provider (CASP) across 30 European Economic Area (EEA) countries.
CARF (the Crypto-Asset Reporting Framework) is a global standard developed by the OECD. It defines in detail which crypto transactions are “reportable” and what type of information is reported. DAC8 essentially plugs CARF into EU law for EU-based providers.
The primary goals of DAC8 are to:
Increase tax transparency for digital assets
Reduce unreported crypto activity
Align the EU with global standards
DAC8 applies across all EU member states and covers most crypto-asset activity.
2. What information is reported under DAC8? (Data categories)
Under the DAC8 directive, CASPs must report specific user and transaction information, including:
Basic account information:
Name
Address
Tax Identification Number (TIN)
Account identifiers / wallet identifiers
Transaction information:
the full name of the type of Reportable Crypto-Asset;
the aggregate gross amount paid, the aggregate number of units and the number of Reportable Transactions in respect of acquisitions against Fiat Currency;
the aggregate gross amount received, the aggregate number of units and the number of Reportable Transactions in respect of disposals against Fiat Currency;
the aggregate fair market value, the aggregate number of units and the number of Reportable Retail Payment Transactions*;
the aggregate fair market value, the aggregate number of units and the number of Reportable Transactions, and subdivided by transfer type where known by the EUIV*,
the aggregate fair market value, the aggregate number of units and the number of Reportable Transactions, and subdivided by transfer type where known by the EUIV*,
the aggregate fair market value, as well as the aggregate number of units of Transfers effectuated by the EUIV to distributed ledger addresses referred to in MiCA not known to be associated with a virtual asset service provider or financial institution*.
* The fair market value shall be determined and communicated in a single Fiat Currency, valued at the time of each Reportable Transaction in a manner that is consistently applied by the EUIV
Only information required by EU law is reported.
3. Which years does DAC8 cover? (Timeline)
DAC8 comes into force on 1 January 2026 with the first reporting cycle occurring in 2027.
This means, you’ll need to report 2026 activity to tax authorities in 2027. DAC8 reporting then continues annually.
Some EU countries may bring in additional local rules earlier.
4. Does DAC8 apply to me as a customer?
DAC8 applies to:
Individuals or entities, resident in the EU Member States, that are customers of the EUIV, or
A user who transacts with a CASP that falls under the DAC8 definition.
If you are an EU tax resident using our platform, some of your transaction data may be included in DAC8 reporting.
5. How does DAC8 relate to my personal tax return?
DAC8 does not replace your personal tax return obligations.
You remain responsible for accurately reporting your crypto gains, losses, and income.
6. What happens if my tax residency changes?
Your tax residency at the time of the transaction will determine how your data is reported.
If you move to another EU country:
Your residency change will be updated once you provide new documentation.
Your data will be reported to the correct tax authority for each applicable period.
If you move outside the EU:
You must update your account details with your new residency.
DAC8 reporting generally stops once you are no longer an EU tax resident.
Previous EU-resident periods may still be reported.
We may request updated proof of address or tax documents when you change residency.
7. What is a TIN (Tax Identification Number), and why is it required for DAC8?
A TIN (Tax Identification Number) is a unique number issued by your country’s tax authority.
Under DAC8, we must collect and verify your TIN to:
Confirm your tax residency
Ensure your crypto activity is reported to the correct EU member state
Comply with enhanced due-diligence obligations
If your TIN is missing or invalid, we may contact you to update your account information.
8. What if I don’t have a TIN or cannot find it?
If you do not know your TIN:
You can find it on most tax authority documents, ID cards, or government portals.
Each EU country has its own TIN format (we can provide links if needed).
You may be required to submit government-issued proof if your TIN cannot be verified.
Some countries issue multiple identification numbers; contact Banxa Support to help guide you to the correct one for DAC8 reporting.
9. What happens if I don’t provide the required DAC8 information?
To comply with EU law, we may be required to:
Restrict access to certain features
Pause withdrawals or limit trading
Close your account as a last resort
We will always notify you before taking any action.
10. Will DAC8 affect my ability to trade or withdraw crypto?
No. DAC8 is strictly a tax reporting requirement. Your trading experience with Banxa remains the same.
11. Will my personal data be safe?
Yes. We comply with:
GDPR
EU regulatory security standards
Industry-leading encryption
Strict internal access controls
Data is transmitted securely only to tax authorities. Only authorised tax authorities receive the data, and only as legally required.
12. Do I need to take action now for DAC8 compliance?
Most users do not need to do anything immediately. Our expert Banxa Support team may ask you to provide:
Confirm your tax residency
Provide or update your TIN
Refresh outdated KYC documents
We’ll contact you if any action is needed, and for security reasons, our messages will always come from an official banxa.com email address.
13. Who can I contact if I have more DAC8 questions?
You can reach our support team via:
This page will be updated as EU member states share additional DAC8 information.