Crypto platforms are entering a new era of tax transparency in the EU.
Luxembourg has recently adopted the law of 27 March 2026 implementing DAC 8 (Directive (EU) 2023/2226), introducing a new automatic exchange of information framework for crypto-assets from 1 January 2026. Crypto platforms will now be subject to tax reporting obligations in respect of their crypto-users (both individual and entities).
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Practical impacts for crypto platforms
- Broad scope: DAC 8 in Luxembourg applies to crypto-asset service providers, those not yet licensed under MiCA and currently operating under a transitional regime.
- Extensive registration and reporting obligations: platforms must register and then collect, verify and report user data and transaction information.
- New due diligence requirements: due diligence processes, including onboarding, must be aligned with DAC 8 standards, for both existing and new clients.
- Cross-border impact: information reported in Luxembourg will be automatically exchanged with the tax authorities of users’ country of residence.
- Compliance risk: failure to comply may result in material administrative penalties.
- Application timeline: rules apply as from 1st January 2026, with first reporting deadlines in 2027.
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Key actions for crypto platforms
- Determine whether your activities fall within DAC 8 scope and trigger registration and reporting requirements.
- Register and organise reporting.
- Implement DAC 8 compliant due diligence processes, including for onboarding.
- Prepare data collection, including for existing clients.
How we can assist
We assist crypto-asset service providers in assessing their DAC8 exposure and advising on the resulting compliance obligations, including due diligence requirements, reporting frameworks, application timelines and related questions.
Please feel free to contact our team should you have any questions.
