EU Enforces Crypto Tax Reporting Rules in January 2026, Non-Compliance Risks Asset Seizure

The European Union's new tax transparency framework for crypto-assets, DAC8, will become fully operational in January 2026. This directive mandates that all crypto-asset service providers within the EU must report their clients' transactions and holdings to national tax authorities. The primary goal is to combat tax evasion by ensuring all crypto gains are properly declared. Authorities will have the power to seize assets from individuals and entities that fail to comply with the reporting requirements. This regulation represents a significant step in the formal integration of the cryptocurrency sector into the EU's established financial and legal systems, impacting exchanges and wallet providers across the bloc.