In a recent meeting on September 13th, members of the European Parliament strongly approved the eighth version of the Directive on Administrative Cooperation (DAC8) rule.
This rule specifically deals with how taxes related to cryptocurrencies should be reported.
The meeting took place in Strasbourg, France, and during the session, DAC8 got strong backing from 535 members who voted in favor of it, while only 57 members voted against it. Additionally, 60 members chose not to vote either way and instead, they refused to vote.
According to official documents from the European Union, DAC8 is designed to give tax authorities the ability to monitor and evaluate all cryptocurrency transactions made by both businesses and individuals in the member countries.
The document stated: “On 8 December 2022, the European Commission proposed to set up a reporting framework which would require crypto-asset service providers to report transactions made by EU clients. This would help tax authorities to track the trade of crypto-assets and the proceeds gained, thereby reducing the risk of tax fraud and evasion.”
The European Commission believes that implementing a system for reporting crypto-assets across the European Union could lead to an increase in tax income, generating somewhere between €1 billion and €2.4 billion each year. This information comes from a report by the European Parliamentary Research Service (EPRS).
DAC8 was approved in May 2023 following the validation of the Markets in Crypto-Assets (MiCA) legislation.
The numeral “8” in the revised program’s name signifies its eighth version, with each preceding directive having focused on distinct aspects of financial supervision.
In its current form, DAC8 adheres to the Crypto-Asset Reporting Framework (CARF) and the legislation outlined in MiCA and, apparently, covers all EU-based cryptocurrency asset transactions.
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