EU’s crypto tax reporting starts in January with threat of asset seizure

New directive, which operates alongside MiCA, expands tax data sharing, sets July 1 compliance deadline for exchanges across bloc.\nWhat to know : The European Union's tax-reporting directive, effective Jan. 1, mandates crypto-asset service providers to report detailed user and transaction data to national tax authorities. The DAC8 rules aim to close tax reporting gaps in the crypto economy, enhancing visibility similar to that of bank accounts and securities. Crypto firms have until July 1 to comply with DAC8's reporting requirements, after which non-compliance may result in penalties.