Stay compliant with DAC8 and CARF
Upcoming regulation will compel Crypto Asset Service Providers to share information relevant for taxation purposes with authorities in all major jurisdictions globally. Find out how to prepare yourself and your clients for this new level of enforcement.
DAC8: Overview & Commentary
EU Obliges Exchanges and Crypto Asset Service Providers to Share Their Users' Tax Data
What is DAC8?
DAC8 is the eight amendment of the “Directive on Administrative Cooperation” and aims to better regulate the tax aspects of crypto assets within the EU. A main objective of DAC8 is to create uniform tax transparency between Member States through coherent disclosure obligations for providers and issuers of crypto-assets and e-money.
What do I need to do?
As a first step, you need to carry out an assessment to determine whether your business qualifies as a Crypto Asset Service Provider and falls under the scope of DAC8. The next step is to identify your obligations under the new legislation, and the impact on your day-to-day operations.
Who is affected?
All organizations that service customers in the EU by processing crypto transactions, such as crypto exchanges, broker intermediaries and crypto ATMs. Also, non-EU based organizations that operate in Europe, might be affected by the DAC8 directive. Please check our FAQ section for a detailed legal definition.
How can Blockpit help?
Our experts help you to identify the impact of DAC8 on your business and provide you with state-of-the-art software solutions to automate upcoming reporting requirements.
Why Blockpit?
We bring efficiency and trust to the financial system of the future
Experience
Blockpit has been serving the digital asset reporting market with its software solutions since 2017, providing clarity and certainty to individuals and institutions alike.
Made in Europe
ISO22301 and ISO 27001 certified closed server-system hosted in Austria with state-of-the-art encryption methodologies and GDPR measures applied.
Global Coverage
Together with our partners at TaxBit we unite the expertise and resources of two leading crypto compliance firms in Europe and the US.
Make Your Business Ready for DAC8
EU legislation on the tax reporting of customer transactions is constantly evolving. Blockpit helps you understand and implement DAC8 requirements.
Frequently Asked Questions
Find answers to your most burning questions about DAC8
Any natural person, legal entity or undertaking (i) whose occupation or business is the provision of one or more crypto asset services to third parties on a professional basis, (ii) that has been authorised within the EU, and (iii) has a registered office in a Member State where they carry out at least part of their crypto-assets services.
Such ‘crypto-asset services’ include:
(a) the custody and administration of crypto-assets on behalf of third parties;
(b) the operation of a trading platform for crypto-assets;
(c) the exchange of crypto-assets for funds;
(d) the exchange of crypto-assets for other crypto-assets;
(e) the execution of orders for crypto-assets on behalf of third parties;
(f) placing of crypto-assets;
(g) the reception and transmission of orders for crypto-assets on behalf of third parties
(h) providing advice or portfolio management in crypto assets;
(j) providing transfer services for crypto-assets on behalf of third parties
For clarity, CASPs that provide crypto asset services on a cross-border basis are not required to have a physical presence in the territory of every host Member State.
The term Virtual Asset Service Provider (VASP) is defined by the Financial Action Task Force (FATF) which is an independent inter-governmental body within the OECD that develops and promotes policies to protect the global financial system against money laundering and corruption. The EU is a member of the FATF and implements its regulations.
On the other hand, the term Crypto Asset Service Provider (CASP) is defined in the Markets in Crypto-Assets Regulation (MiCA) and is similar but broader in scope than the definition of a VASP to ensure it covers more use cases of crypto asset services. Providers of crypto-assets in the EU will be subject to the definition of CASPs.
While MiCA constitutes the legal framework for the regulation of crypto-assets and as a Regulation is directly applicable in the EU member states, DAC8 is primarily intended to regulate the exchange of tax-relevant information between CASPs and national tax authorities and, as a Directive, requires implementation through national laws in each member state.