European Parliament votes overwhelmingly in support of DAC8 crypto tax reporting rule
In a plenary session, the bill gained 535 votes, with 57 against and 60 abstentions. In a plenary session on September 13, lawmakers in the European Parliament decisively supported the eighth iteration of the Directive on Administrative Cooperation (DAC8), a cryptocurrency tax reporting rule. The session, held in Strasbourg, France, reportedly saw DAC8 get overwhelming support, with 535 members voting in favor and only 57 voting against. The bill also received 60 abstentions.
According to documents from the European Union, DAC8 is intended to give tax collectors the capacity to track and evaluate all Bitcoin transactions done by organizations or individuals within the member states: “On December 8, 2022, the European Commission proposed establishing a reporting framework requiring crypto-asset service providers to report transactions made by EU clients.” This would assist tax authorities in tracking the exchange of crypto-assets and the proceeds obtained, lowering the risk of tax fraud and evasion.”
The vote in the plenary session on September 13 was the penultimate hurdle before the passage of DAC8. Moving forward, EU member states will have until December 31, 2025, to implement the laws before they take effect on January 1, 2026. As previously reported by Cointelegraph, DAC was legalized in May 2023 following the passing of the Markets in Crypto-Assets (MiCA) law. The “8” in the title of the modified program refers to the program’s eighth iteration, with each previous standing directive addressing a different aspect of financial control.
In its current version, DAC8 follows the Crypto-Asset Reporting Framework (CARF) and the MiCA regulations, ostensibly covering all EU-based cryptocurrency asset transactions. According to Max Bernt, Blockpit’s chief legal officer, such a sweeping change “concerns, in particular, the obligation of RCASPs [reporting crypto asset service providers] to determine on a case-by-case basis whether a transferred crypto-asset is reportable or not.” He also raised concern about the possibility of “duplicate reporting” as lawmakers try to separate existing regulations from those that would be implemented.
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