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EU’s DAC8 Takes Effect, Pulling Self-Custody Withdrawals Into Crypto Tax Reporting

Providers now build systems and capture data through 2026, with first reports due in 2027.

Overview

  • Reporting covers crypto‑fiat trades, crypto‑to‑crypto swaps, and transfers that include withdrawals to unhosted wallets.
  • Firms must collect user tax identification numbers, and after two reminders and a 60‑day period they may block reportable transactions for noncompliant users.
  • Implementing Regulation (EU) 2025/2263 sets standardized forms and machine‑readable formats to enable ingestion by national tax authorities.
  • The European Commission models roughly €1.7 billion in additional annual revenue and estimates provider costs at about €259 million one‑off and €22.6–€24 million recurring each year.
  • EU data will flow into broader cross‑border matching under the OECD Crypto‑Asset Reporting Framework from 2027, reducing the utility of routing activity offshore.