There was a time when crypto felt like an area the state could only watch from the sidelines. That time is over. Since 1 January 2026, a new EU reporting obligation called DAC8 has been in force, and it fundamentally changes the relationship between your exchange and the tax office. In short: your crypto service providers now report you automatically. Let me walk through what that actually means and what you should do about it. One important sentence up front: this is an explainer, not tax advice.
What DAC8 actually is
DAC8 is the eighth version of the EU directive on administrative cooperation between tax authorities. It builds on an international OECD standard, the Crypto-Asset Reporting Framework, or CARF for short. Put simply, the EU is extending the same logic that has long existed for bank accounts into the world of digital assets. You can read the official description directly at the European Commission. In Germany, all of this is implemented through the Crypto-Asset Tax Transparency Act.
The core in one sentence. From 2026, providers of crypto services must systematically record who trades with them and pass that data automatically to the tax authorities.
Who reports, and who does not
A common misconception: you as an investor do not suddenly have to file something new. The reporting duty sits with the so-called Crypto-Asset Service Providers, that is, exchanges like Coinbase or Kraken, brokers, custodians and payment providers. They collect the data and pass it on. Your job is a different one: you still have to declare your crypto income correctly in your own tax return. The difference is that the tax office now knows whether your figures match the reported data.
And it is not only the classic trading venues that report. In principle, any platform that enables the exchange, custody or transfer of crypto-assets is covered. If you want to think through what role crypto will even play going forward, you can find my take in crypto 2026, what remains.
What exactly gets transmitted
Providers collect your identity data, your tax residence and the relevant transaction data. Technically this runs through an extension of the familiar know-your-customer check. You know the drill: upload your ID, confirm your address. What is new is that many exchanges additionally require a self-declaration about your tax residence. Anyone who refuses that declaration risks having their account restricted. So I would not ignore such requests.
The deadlines you should know
The timing matters, because it often causes confusion. Data collection has been running since 1 January 2026. Reporting, however, happens in retrospect. The first transmission for the 2026 tax year does not take place until 2027. Under the EU rules, the report must be filed within nine months of the end of the first reporting year. In Germany, the deadline to the Federal Central Tax Office falls in the summer of 2027, and the automatic exchange between EU member states follows by the end of September 2027.
The uncomfortable part. With this data, the tax office can also look backwards. Anyone who failed to properly declare crypto gains in earlier years carries a considerably higher risk of detection from 2027 onward. That is no reason to panic, but a very good reason to get your records in order now.
Why I think this is the right move
I have been close to this market for years through CryptoTicker, and my view is uncomfortable for some: over the long run, transparency is good for crypto. A market that wants to grow up and play with traditional capital cannot stay in the half-dark forever. We see the same movement with regulated stablecoins, which are turning into genuine payment infrastructure right now. I described why these belong together in stablecoins and payments. DAC8 is inconvenient, but it is the price for digital assets finally arriving inside the financial system.
My practical advice, explicitly not tax advice: keep clean documentation of your trades, clear up open questions from earlier years with a tax advisor, and answer your exchange's self-declaration honestly. For anyone with nothing to hide, little changes in the end, other than the bookkeeping getting tidier.
Frequently Asked Questions
What is DAC8 in simple terms?
DAC8 is an EU directive in force since 1 January 2026. It requires crypto service providers to report user and transaction data automatically to the tax authorities. It is based on the OECD standard CARF.
Do I as an investor have to report anything myself?
The reporting duty lies with the exchanges and providers, not with you. But you still have to declare your crypto income correctly in your tax return. The tax office can now match your figures against the reported data.
When is data transmitted?
Collection has been running since 1 January 2026. The first report for the 2026 tax year takes place in 2027, and the automatic exchange between EU member states by the end of September 2027.
Can the tax office also review old crypto gains?
Yes. Based on the reported data, the authority can also review earlier years. Anyone who did not declare past gains correctly should clarify this with a tax advisor.
Warm regards,
Dennis Weidner
