The European Union has taken another big step. The DAC8 directive (the 8th Administrative Cooperation Amendment), which was finalized this year, will officially come into effect on January 1st next year. This time, it's serious—aiming to incorporate the entire crypto trading sector into the tax authorities' automatic information exchange system.

In simple terms, this marks a major shift in the EU's approach to crypto regulation. Previously, crypto asset transactions were largely uncoordinated, and tax authorities had little oversight. Now, the EU is determined to increase transparency and close tax evasion loopholes.

What is the core? DAC8 introduces the OECD's Crypto Asset Reporting Framework (CARF). This framework requires all institutions providing crypto services—exchanges, wallets, lending platforms, etc.—to report user transaction data to tax authorities. It's not a one-off report but an automatic, periodic information exchange.

What does this mean for industry practitioners? First, compliance costs will rise, as systems need to be revamped and data integration implemented. Second, the balance between user privacy and regulation shifts further toward regulatory oversight. Many worry that this could give certain players more reasons to leave the EU market, but from a tax enforcement perspective, the EU is clearly committed to this move.

There are still many major developments expected by 2026. The digital euro CBDC is also nearing launch, and regulatory authority over the crypto industry is being restructured. The policy pace in Europe will continue to have a significant impact on the global crypto ecosystem.