BDO: New Crypto Asset Reporting Obligations Effective January 1, 2026

Multiple European Union member states, including Germany, are implementing new regulations for the exchange of tax information concerning crypto assets. These changes, based on the EU's DAC8 directive and Germany's Kryptowerte-Steuertransparenzgesetz (KStTG), mandate broader reporting from Crypto Asset Service Providers (CASPs) to tax authorities.

The new rules take effect on January 1, 2026. CASPs must collect, verify, and report tax-relevant customer and transaction data to tax authorities. This information will then be automatically exchanged among EU member states to combat tax evasion and ensure tax revenues.

DAC8 builds upon the OECD's Crypto Asset Reporting Framework (CARF) while extending the Common Reporting Standard (CRS). Its objective is to enhance transparency in transactions related to digital assets and crypto assets.

All CASPs offering services such as custody, trading, exchange for fiat currency or other crypto assets, transfer services, investment advice, or portfolio management of crypto assets will be subject to these new requirements. The data collection must cover user personal details, tax identification numbers, and detailed transaction information, including the type of crypto asset and transaction volumes.