July 21, 2024
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EU Adopts DAC8: New Rules for Cryptocurrency Tax Reporting Set to Launch

The Council of the European Union formally adopted the eighth version of the Directive on Administrative Cooperation (DAC8) on October 17, a rule governing tax reporting for cryptocurrencies. The regulation is set to take effect once it’s published in the Official Journal of the EU.

DAC8 was initially established in May 2023, following the introduction of the Markets in Crypto-Assets (MiCA) legislation. The designation of ‘eight’ in its name signifies that it is the eighth iteration, with previous directives addressing various aspects of financial oversight. DAC8’s primary objective is to grant tax authorities the authority to oversee and assess all cryptocurrency transactions conducted by individuals or entities within any EU member state.

In its current form, DAC8 aligns with the Crypto-Asset Reporting Framework (CARF) and the stipulations outlined in MiCA, effectively encompassing all cryptocurrency asset transactions within the European Union. In September, DAC8 garnered substantial support in the European Parliament, with 535 votes in favor and only 57 against. Simultaneously, U.S. regulators are actively pursuing the speedy implementation of cryptocurrency tax collection procedures. On October 11, seven members of the U.S. Senate urged the Treasury Department and the Internal Revenue Service to expedite the enactment of certain tax reporting requirements for crypto brokers. They criticized a two-year delay in implementing these requirements, which are slated to come into effect in 2026 for transactions occurring in 2025.

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Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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