Members' Research Service By / January 30, 2023

Tax transparency rules for crypto-asset transactions (DAC8) [EU Legislation in Progress]

The European Union Directive on Administrative Cooperation (DAC) dates back to 2011.

© Arsenii / Adobe Stock

Written by Pieter Baert (1st edition).

The crypto-asset sector, while still relatively new, has already changed the world of payments and investment forever. The fast-changing, mobile nature of the sector and its growing market prominence poses challenges, however, for tax authorities, which are not always able to track the capital gains made from trading crypto-assets.

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 reporting framework would be set-up by amending the Directive on Administrative Cooperation (DAC), which is the main framework for other data exchanges between tax authorities. The proposal also puts forward a series of (smaller) changes to improve the existing exchange of tax-related information.

The proposed directive is subject to a special legislative procedure, requiring unanimous support in the Council, following consultation of the European Parliament and the European Economic and Social Committee.


Proposal for amending Directive 2011/16/EU on administrative cooperation in the field of taxation
Committee responsible:Economic and Monetary Affairs (ECON)COM(2022) 707
Rapporteur:Not yet appointed2022/0413(CNS)
Shadow rapporteurs:Consultation procedure
(CNS) – Parliament adopts
a non-binding opinion
Next steps expected: Initial discussions in committee

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