EU Launches 'DAC8' Era: Failure to Submit Tax Information Within 60 Days Will Result in Account Freezing

Source: TokenPost Original Title: Europe Opens the Era of Cryptocurrency Tax Filing ‘DAC8’… “Account Freezing if Not Reported Within 60 Days” as a Strong Measure Original Link:

OECD-led Global Cryptocurrency Tax Framework Officially Launched

The UK and EU(EU) have officially adopted the OECD’s “International Cryptocurrency Tax Reporting Framework(CARF)”, enhancing global tax transparency. EU’s regulatory intensity exceeds expectations, involving not only data collection but also unprecedented strict measures such as mandatory account freezing for users who fail to submit tax information.

According to global regulatory analysis firm TaxDo and foreign media reports, the EU will fully implement the “Amended Administrative Cooperation Directive 8(DAC8)” and the revised “Common Reporting Standard(CRS 2.0)” starting January 1, 2026. This marks the transition from the preparatory phase of information exchange in 2027 to actual enforcement, with compliance requirements immediately taking effect for market participants.

Core Rule: “60-Day Freezing Rule”

The most notable aspect of this regulation is the so-called “60-day freezing rule.”

Under EU’s DAC8, cryptocurrency service providers(CASP) must obtain tax self-certification(Self-certification) documents from users when opening new accounts. If users fail to provide valid tax information within 60 days of receiving the request, the service provider must forcibly freeze further transactions on the account and lock assets.

Experts point out that “this is more direct and strict than the UK’s system, which only focuses on facilitating tax evasion, whereas the EU system actually grants service providers the role of tax enforcement officers.” Now, “Know Your Customer(KYC)” systems have evolved beyond simple identity verification to include “tax qualification review,” verifying valid taxpayer identification numbers(TIN) and confirming tax residence.

Risk of MiCA License Revocation

This tax reporting obligation is closely linked to the EU’s comprehensive cryptocurrency regulation “MiCA.”

DAC8 is not only a tax law revision but also part of the MiCA regulatory framework. If CASP violates DAC8 reporting obligations, they face fines based on turnover(up to 150,000 euros in some member states), and in the worst case, their MiCA passport(entire EU operating license) could be revoked. This means tax compliance has become a necessary condition for cryptocurrency operators to maintain their business licenses.

Significant Expansion of Regulatory Scope

The scope of regulation has also been significantly expanded, including:

• Cryptocurrency exchanges and wallet service providers(CASP)
• Electronic money institutions(EMI)
• Internet professional banks(Neobanks)

Particularly, stablecoins are classified as “Specific Electronic Money Products(SEMPs)” and are subject to CRS 2.0. Even offshore service providers without physical presence within the EU must fulfill the same reporting obligations if they provide services to EU residents. Overseas exchanges operating via “reverse solicitation” methods must also collect and report EU customer data.

Increased Industry Compliance Burden

The implementation of this system will greatly increase the compliance burden on related enterprises such as cryptocurrency exchanges and custodians. Companies must strengthen their Know Your Customer(KYC) systems and record and retain all transaction records according to CARF standards.

Experts suggest that “2026 will become the inaugural year for global cryptocurrency tax management. Service providers must improve data collection systems, and investors should recognize that their transactions will be transparently reported to tax authorities, paying attention to tax filings.”

The UK Treasury and EU authorities, by initiating this data collection, reaffirm their commitment to increasing transparency in the digital asset market and establishing a fair taxation system. As the cryptocurrency market is integrated into a tax regulatory network on par with traditional finance, market maturity will also be enhanced.