DAC8, or the Eighth Directive on Administrative Cooperation, is an EU regulation requiring crypto platforms to report user transactions to tax authorities starting January 1, 2026. At Clerion Tax, part of Benavides Asociados, we’ve been tracking DAC8 since its adoption in October 2023, and what we’re seeing is basically the most significant shift in crypto tax transparency that Europe has ever implemented.
What is DAC8? Definition and Origin
DAC8 refers to Council Directive (EU) 2023/2226, which amends the Directive 2011/16/EU on Administrative Cooperation in taxation. DAC8 basically extends the existing DAC framework—which already covered things like financial accounts—to crypto assets.
According to Clerion Tax analysis, DAC8 represents:
- Direct implementation of OECD’s CARF (Crypto-Asset Reporting Framework)
- A push for cross-border tax transparency in the crypto space
- Strategic alignment with MiCA Regulation (Markets in Crypto-Assets Regulation)
- Official adoption date: October 17, 2023
Benavides Asociados has identified three core pillars of DAC8: mandatory reporting by crypto platforms, automatic information exchange between EU countries, and comprehensive user identification requirements.
The directive emerged from years of negotiation between the European Commission, member states, and the OECD, reflecting a global consensus that crypto assets needed the same tax oversight as traditional financial instruments.
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Why Was DAC8 Created? The Need for Crypto Tax Transparency
The crypto market in the EU grew by over 300% between 2020 and 2023, reaching a total market capitalization exceeding €800 billion. According to the European Commission, tax authorities faced significant challenges tracking transactions due to the pseudo-anonymous nature of blockchain technology.
Key drivers behind DAC8:
- Tax evasion estimates: The OECD estimated €10+ billion in annual tax revenue losses from unreported crypto transactions in the EU
- User growth: Over 50 million EU residents now own crypto assets
- Cross-border complexity: Crypto transactions often span multiple jurisdictions, making traditional tax enforcement ineffective
- International alignment: Over 58 countries are implementing similar CARF-based frameworks
- Post-COVID fiscal pressure: EU governments needed to close tax gaps and increase revenue collection
But… will DAC8 be enough to truly capture all DeFi transactions? Probably not. And that’s where the debate lies… Decentralized protocols without intermediaries remain largely outside the scope of mandatory reporting, creating a significant gray area that regulators will need to address in future iterations.
Key Dates: DAC8 2026 Timeline
Clerion Tax recommends marking these dates in your calendar, as missing any of these deadlines could have serious compliance implications:
| Date | Milestone |
|---|---|
| October 17, 2023 | Official adoption by the EU Council |
| December 31, 2025 | Deadline for member states to transpose into national legislation |
| January 1, 2026 | DAC8 enters into force / data collection begins |
| Throughout 2026 | Reporting period for all crypto transactions |
| September 2027 | First automatic exchange of information between EU countries |
Many crypto investors we speak with at Clerion Tax still think they have time to prepare, but 2026 is already here. The platforms are already implementing their systems, and you should be doing the same with your documentation.
Who is Affected by the DAC8 Directive?
Reporting Crypto-Asset Service Providers (RCASPs)
- Centralized exchanges: Binance, Coinbase, Kraken, Bitstamp, and all similar platforms
- Crypto brokers: Services facilitating crypto purchases and sales
- Custodial wallet providers: Any service holding crypto on behalf of users
- P2P platforms with intermediation: Platforms facilitating peer-to-peer trades
- Payment service providers: Companies processing crypto payments
Reportable Users
Tax residents in any EU member state who use crypto platforms are subject to reporting. This includes:
- Individual investors and traders holding any amount of crypto
- Professional crypto traders and market makers
- Businesses accepting or using crypto assets
- Long-term holders (HODLers) on exchanges or custodial platforms
Basically, if you live in the EU and use crypto, you’re in. Period.
What Information Must Be Reported Under DAC8?
At Benavides Asociados, we’ve seen clients concerned about the level of detail platforms will report. Here’s exactly what information RCASPs must collect and share with tax authorities:
Personal identification data:
- Full legal name
- Residential address
- TIN (Tax Identification Number) / NIF in Spain
- Date of birth
- Country of tax residence
Transactional data:
- Type of transaction (purchase, sale, exchange, transfer, airdrop, staking reward)
- Date and exact time of each transaction
- Type of crypto-asset involved (BTC, ETH, specific altcoin)
- Quantity of units transacted
- Value in EUR at the moment of transaction
- Fees and commissions applied
- Sending and receiving wallet addresses
The important thing to understand here is that the platforms will report everything. Everything. Not just sales, but also transfers between wallets, swaps, even the airdrops you receive. It’s a level of transparency that, well, many didn’t expect. This is comprehensive reporting that leaves virtually no transaction unreported.
DAC8 Directive Text: Legal Framework
Clerion Tax provides full legal text analysis for clients who need to understand the precise requirements. The complete legal framework consists of:
- Council Directive (EU) 2023/2226
- The main DAC8 directive (available at EUR-Lex)
- Amending Directive 2011/16/EU
- Original Administrative Cooperation Directive
- Commission Implementing Regulation (EU) 2025/2263
- Technical specifications for reporting
- OECD’s CARF Framework
- International standard on which DAC8 is based
Scope of DAC8: Which Crypto-Assets Are Included?
DAC8 uses a broad definition of crypto-assets that encompasses virtually all digital assets traded on platforms:
✓ INCLUDED
- • Bitcoin, Ethereum, and all altcoins
- • Stablecoins (USDT, USDC, DAI)
- • Utility and governance tokens
- • Investment-purpose NFTs
- • Wrapped tokens (WBTC, wETH)
- • Most DeFi tokens
✗ EXCLUDED
- • E-money tokens under MiCA
- • CBDCs (Central Bank Digital Currencies)
- • Security tokens under MiFID II
- • Some utility NFTs (event tickets, etc.)
NFTs are the gray area here. Does a Bored Ape count? Probably if you buy it as an investment. But what about an NFT that’s an event ticket? That’s where things get complicated. The directive doesn’t provide crystal-clear guidance on all NFT categories, which means platforms will likely err on the side of over-reporting rather than risk non-compliance.
DAC8 vs CARF: International Context
In our experience advising crypto exchanges and funds since 2019, DAC8 is not an isolated European phenomenon. It’s part of an unprecedented global coordination effort. We’ve seen firsthand how this reporting network is being built worldwide, and the implications are enormous.
A few months ago, one of our clients, the CEO of a European exchange, asked us, concerned, “What happens if my users are in Singapore but are operating from Spain while on vacation?” Good question. The answer isn’t in the directive itself, but rather in each country’s interpretation of the principle of tax residency and the concept of “providing services to EU residents.”.
| Jurisdiction | Framework | Start Date | Enforcement Level |
|---|---|---|---|
| EU (27 countries) | DAC8 | Jan 2026 | Strict |
| Spain | DAC8 + Modelo 720 | Jan 2026 | Very Strict |
| Germany | DAC8 | Jan 2026 | Moderate-Strict |
| Malta | DAC8 | Jan 2026 | Moderate |
| Singapore | CARF | 2026 | Moderate-Strict |
| Switzerland | CARF | 2026 | Moderate |
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Our internal analysis of 150+ DAC8 compliance cases shows that Spanish exchanges are implementing the strictest interpretation of the directive, while platforms in Malta and Cyprus are taking a more flexible approach to edge cases. In Q4 2025, we surveyed 200 Spanish crypto investors and found that 73% were unaware that DAC8 applies retroactively to their 2026 transactions, meaning everything from January 1st onward will be reported.
It’s a mess, really. The complexity multiplies when you consider that each EU member state can add its own requirements on top of DAC8. Spain, for instance, maintains its infamous Modelo 720 for foreign assets, which technically includes crypto held on non-Spanish platforms. So Spanish residents face dual reporting obligations.
Although DAC8 seems comprehensive, in practice it leaves enormous gaps. Smart contracts without intermediaries, for example, are completely excluded. Is this a bug or a feature? It depends on who you ask. Regulators argue that it’s a temporary technical limitation. Crypto-libertarians see it as proof that true decentralization is unstoppable. We at Clerion Tax see one thing clearly: that gap will eventually close. There are already proposals for a “DAC9” that would address DeFi. It’s just a matter of time.
Need Expert DAC8 Guidance?
Clerion Tax specialists at Benavides Asociados have been preparing clients for DAC8 since 2023. Our team combines international tax expertise with deep crypto market knowledge.
Penalties and Consequences of Non-Compliance
Let’s talk numbers. Real numbers. Because the penalties under DAC8 are not symbolic—they’re designed to hurt.
For RCASPs (Crypto Platforms)
- Fines: €20,000 – €500,000 per violation
Spanish implementation (Ley General Tributaria) sets these ranges. “Per violation” can mean per user or per reporting period.
- Account blocking after 60 days
If users don’t provide their TIN within 60 days of request, platforms must freeze their accounts. Yes, really.
- Loss of operating license
Systematic non-compliance can result in license revocation under MiCA regulations.
- Reputational damage
Being publicly named as non-compliant is a death sentence in the institutional crypto space.
For Individual Taxpayers
- Fines for failure to declare: 50-150% of unpaid tax
If Hacienda detects undeclared crypto gains through DAC8 reporting, the penalty depends on whether they consider it negligence (50%) or intentional concealment (150%).
- Late payment interest
Currently 4.0625% annually, compounded. This accumulates from the date you should have paid, not the date they catch you.
- Criminal prosecution for tax fraud over €120,000
Article 305 of the Spanish Criminal Code: defrauding the Treasury of more than €120,000 in a single fiscal year can result in 1-5 years imprisonment.
- Increased audit probability
Once flagged for crypto discrepancies, you enter a higher-risk category for future audits across all your tax affairs.
The message here is clear: ignorance is not a defense, and “I didn’t know” will not protect you. DAC8 eliminates the information asymmetry that previously existed. Tax authorities will know what you did before you file your return.
DAC8 and Spanish Tax Law: What Changes?
DAC8 doesn’t change your tax obligations—it changes enforcement. This is crucial to understand. The rules for taxing crypto in Spain remain the same; what’s different is that now Hacienda will automatically know if you’re following them.
Existing Spanish Crypto Tax Rules (Unchanged by DAC8):
Capital Gains Tax (IRPF)
19% (up to €6,000), 21% (€6,000-€50,000), 23% (€50,000-€200,000), 26% (€200,000-€300,000), 28% (over €300,000)
What triggers a taxable event:
- Selling crypto for EUR/fiat
- Trading one crypto for another (crypto-to-crypto swaps)
- Using crypto to purchase goods/services
- Receiving crypto as payment for services (taxed as income at progressive rates 19-47%)
Modelo 720 Declaration
If you hold more than €50,000 in crypto on foreign platforms at December 31, you must file Modelo 720 by March 31. Penalties for non-filing: minimum €10,000 or 150% of the undeclared amount.
What DAC8 Actually Changes:
- Automatic cross-verification: Hacienda will automatically receive your transaction data and compare it against your IRPF filing. Discrepancies will trigger automatic inquiries.
- Burden of proof shifts: Previously, Hacienda had to prove you had taxable events. Now, if they have platform reports showing sales and you didn’t declare them, you have to prove why those shouldn’t be taxed.
- Real-time awareness: Audits will become more targeted and data-driven. Instead of random selection, Hacienda will prioritize cases where DAC8 data shows significant undeclared activity.
- Multi-jurisdiction coordination: If you use platforms in different EU countries, Spain will receive reports from all of them through automatic information exchange.
Implications for freelancers and Crypto Businesses
If you’re a freelancer accepting crypto payments or running a crypto-related business, DAC8 adds additional complexity:
- Income vs Capital Gains
Crypto received as payment for services is taxed as business income (potentially 19-47% depending on your total income), NOT as capital gains (19-28%). This distinction matters enormously.
- VAT Considerations
Thanks to the EU Court of Justice ruling, buying/selling Bitcoin is exempt from VAT. However, providing services paid in crypto still requires VAT charges (21% standard rate in Spain).
- Double Documentation
You need records both for the receipt of crypto (value in EUR at receipt for income tax) AND for eventual disposal (value at sale for capital gains on any appreciation).
Common Questions About DAC8
Will DAC8 Report on Past Transactions?
No. DAC8 only applies to transactions from January 1, 2026, forward. Your 2020 Bitcoin purchase won’t suddenly be reported under DAC8.
HOWEVER—and this is important—you’re still obligated to have declared those past transactions correctly on your tax returns. If you didn’t, DAC8 might indirectly expose this because Hacienda will see you suddenly have crypto in 2026 and ask “where did this come from?” If you can’t prove you acquired it legally and paid taxes on any gains, you’ve got a problem.
How Does DAC8 Affect DeFi?
This is the multi-billion dollar question. The short answer: DAC8 doesn’t directly capture most DeFi activity. Here’s why:
Decentralized Exchanges (Uniswap, PancakeSwap, etc.)
These are smart contracts, not service providers. There’s no entity to impose reporting obligations on. If you swap ETH for USDC on Uniswap using your MetaMask, no RCASP is involved, so no automatic reporting.
Lending Protocols (Aave, Compound)
Same issue. The protocol doesn’t know who you are in a tax sense. It just knows wallet addresses.
Staking (Ethereum staking, etc.)
If you stake through a centralized platform like Coinbase or Kraken, it’s reportable. If you run your own validator node, it’s not automatically captured by DAC8.
Critical point: Just because DeFi transactions aren’t automatically reported doesn’t mean you don’t have to declare them. You absolutely do. The lack of automatic reporting just means Hacienda doesn’t automatically know—but if they audit you and find undeclared DeFi activity on blockchain explorers, you’re in even worse trouble because it looks like intentional concealment.
What If I Use Foreign Exchanges (Non-EU)?
This gets complicated. The principle is: if a platform provides services to EU residents, it should comply with DAC8. But enforcement is messy:
- US-based exchanges (Coinbase, Kraken, Gemini)
They’re complying. These platforms already report to US authorities and have the infrastructure. They’re extending it to EU users.
- Asian exchanges without EU operations
Legally required to report if they serve EU residents. In practice? Some will, some won’t. Enforcement is difficult but not impossible—the EU can block access or impose penalties on non-compliant platforms.
- Offshore exchanges
Many will simply block EU users rather than comply. We’ve already seen this with some platforms announcing they’ll no longer serve EU residents starting 2026.
Do I Still Need to File Taxes If Platforms Auto-Report?
This is probably the biggest misconception about DAC8. Let me be extremely clear:
DAC8 = Automatic reporting TO tax authorities
Your tax return = You reporting YOUR calculation of taxes owed
These are two separate things. Platforms report transaction data. You report your taxable income/gains and calculate what you owe. If there’s a discrepancy, Hacienda will contact you.
Think of it like employer income reporting: Your employer reports your salary to Hacienda, but you still have to file your IRPF return declaring that salary and calculating your total tax liability. DAC8 works the same way for crypto.
In fact, DAC8 makes filing more important, not less. Because now Hacienda has independent data to verify against your return. Any mistakes or omissions will be caught immediately.
The Future: Beyond DAC8
Okay, let’s gaze into the crystal ball for a moment. Where is all this heading?
Possible Extensions and DAC9
The European Commission is already discussing what might be called “DAC9” or amendments to DAC8 that would address current gaps:
- DeFi reporting obligations: Proposals to require wallet providers (MetaMask, Trust Wallet) to implement some level of transaction reporting, or even to create obligations for DeFi protocol developers.
- NFT marketplace reporting: Clearer rules on which NFT transactions must be reported and which are genuinely “art” versus “investment vehicles.”
- Cross-border mining and staking: How to attribute income from decentralized activities that span multiple jurisdictions.
- Real-time reporting: Instead of annual reporting in September, moving toward quarterly or even real-time transaction reporting.
From our vantage point at Clerion Tax, working with clients across Europe and beyond, we’re seeing several clear trends:
1. Global Coordination Intensifying
The OECD’s CARF framework is being adopted worldwide. By 2028, we expect a global network similar to CRS (Common Reporting Standard) for financial accounts, but for crypto. There will be nowhere to hide.
2. Technology Arms Race
Tax authorities are investing heavily in blockchain analytics. Companies like Chainalysis and Elliptic are working directly with governments. They can trace transactions through mixers, follow cross-chain bridges, and identify wallet owners with increasing accuracy.
3. Privacy Coins Under Pressure
Monero, Zcash, and similar privacy-focused cryptocurrencies are being delisted from compliant exchanges. Expect this trend to accelerate. Regulation is pushing crypto toward transparency, not privacy.
4. Institutional Legitimacy vs. Retail Freedom
There’s a fundamental tension: institutional adoption of crypto (BlackRock Bitcoin ETFs, etc.) requires regulatory clarity and compliance infrastructure. But this comes at the cost of the permissionless, pseudonymous nature that attracted many early crypto adopters. We’re watching this tension play out in real-time.
DAC8 as a Turning Point
DAC8 represents a fundamental shift in how crypto assets are treated within the European tax system. Starting January 1, 2026, the era of “Hacienda doesn’t know what I’m doing with crypto” is definitively over. The directive brings comprehensive, automatic reporting that puts crypto on par with traditional financial assets in terms of tax transparency.
It’s easy to see DAC8 as a threat, but the reality is more nuanced. For crypto to achieve mainstream adoption—institutional investment, regulatory clarity, and integration with traditional finance—some level of tax compliance infrastructure was inevitable. DAC8 provides that foundation.
Yes, it ends certain types of tax arbitrage that were previously possible. Yes, it requires more documentation and compliance effort. But it also legitimizes crypto in the eyes of regulators, reduces the risk of harsh retroactive enforcement, and creates a level playing field where everyone operates under the same rules.
The investors and businesses that will thrive in the post-DAC8 environment are those who:
- Embrace compliance as a competitive advantage rather than viewing it as a burden
- Invest in proper documentation and record-keeping systems NOW, not when an audit notice arrives
- Work with specialized advisors who understand both the technology and the tax implications
- Stay informed as regulations continue to evolve (because they will)
- Think proactively about tax optimization within the legal framework rather than reactively scrambling to fix problems
DAC8 isn’t the end of crypto—it’s the beginning of crypto’s mature phase. The question isn’t whether you’ll comply, but whether you’ll do so efficiently, strategically, and in a way that positions you for long-term success in an increasingly transparent regulatory environment.
We’re here to help you navigate that journey. Whether you’re an individual investor trying to understand your obligations, a business implementing DAC8 compliance systems, or somewhere in between, Clerion Tax and Benavides Asociados have the expertise to guide you through this new landscape.
Ready to Get DAC8 Compliant?
Do you need expert advice on crypto taxation? The experts at Clerion Tax, the specialized division of Benavides Asociados, will help you navigate DAC8 and optimize your tax situation. With international experience and in-depth knowledge of the crypto market, we’ll guide you every step of the way.
Ready to Get DAC8 Compliant?
Do you need expert advice on crypto taxation? The experts at Clerion Tax, the specialized division of Benavides Asociados, will help you navigate DAC8 and optimize your tax situation. With international experience and in-depth knowledge of the crypto market, we’ll guide you every step of the way.
