From 1 January 2026, the European DAC8 directive will transform the reporting of crypto transactions. Crypto-asset platforms will be required to automatically provide user data to tax authorities. Combined with the French Ministry of Finance’s AI-based analysis tools, this information will enable much more detailed and systematic monitoring of cryptocurrency activity.
Investors hoping their BTC, ETH, or stablecoin transactions would remain under the radar will be disappointed. Once the measure comes into force, all significant transactions — including purchases, sales, and swaps — will be recorded and scrutinised. Accounts opened on Binance, Kraken, or other foreign platforms will not escape long-term oversight.
DAC8: a regulatory turning point for crypto assets in Europe
Directive (EU) 2023/2226, adopted on 17 October 2023, builds upon the existing automatic exchange of tax information. Its objective is to reduce the under-reporting of income from crypto-assets. Centralised platforms operating within the EU must collect, standardise, and transmit customer data to the relevant tax authorities.
The real impact on taxpayers
Before DAC8, transactions via foreign exchanges largely escaped tax authorities’ attention. After DAC8, major platforms such as Binance, Coinbase, and Kraken will transmit all relevant information annually to French authorities.
This obligation is enshrined in domestic law through the 2025 Finance Act, which incorporated DAC8 into the General Tax Code (Articles 1649 AC bis to 1649 AC sexies). The legal framework is now set.
Information now accessible to tax authorities
Each platform must report individual user data, including:
Identification data:
- Full name and address
- Date and place of birth
- Tax identification number
- Tax residency
Transaction history:
- Type of crypto assets held or exchanged
- Type of transaction (purchase, sale, swap or transfer)
- Amounts involved
- Transactions dates
In practice, an account opened years ago on a European platform and never declared may, from September 2027, be automatically reconciled with 2026 tax returns.
A now well-established Timeline
| Stage | Date |
|---|---|
| Adoption of DAC8 | 17 October 2023 |
| Integration into French law | 14 February 2025 |
| Start of collection | 1er January 2026 |
| First transmission to the tax authorities | 30 September 2027 |
From 2026 onwards, traceability will become the norm, giving users only months to rectify omissions.
Artificial intelligence at the heart of tax oversight
DAC8 is complemented by AI tools used by the DGFiP.
The GALAXIE system combines:
- Declared income
- Bank flows
- Assets
- Data from international trade
- Lifestyle indices
Each taxpayer receives a tax consistency index. By 2025, half of all audits will be triggered by algorithmic detection. Significant discrepancies between declared income and spending may prompt investigations, especially for undeclared crypto gains.
Why tax authorities are so interested in cryptos
The Court of Auditors estimates:
- Crypto capital gains in 2021: €3.5 billion
- Amounts declared: €400 million
This large discrepancy explains the increased monitoring, now largely digital and paperless.
Financial consequences in case of non-compliance
For individuals
- Undeclared foreign account: up to €1,500 per account
- Late filing: +10%
- Deliberate non-compliance: +40%
- Fraud: +80%
For platforms
- Penalty per incorrect transaction (capped)
- Heavy administrative fines
- Risk of being banned from operating
An undeclared gain of €100,000 could result in charges totaling nearly 60% depending on the case.
Areas still partially out of scope
Certain practices are not automatically reported:
- Cold wallets: no reporting unless assets pass through an exchange
- DeFi protocols: no intermediary reporting
- Non-EU platforms: limited applicability
However, users remain responsible for declaring all assets.
European overview
- France: flat tax of 30%, among the most restrictive
- Germany: exemption after one year
- Switzerland: exemption for individuals
- Italy: up to 42%
How to anticipate before 2026
Priority actions for investors:
- Identify all open accounts
- Keep complete transaction histories
- Correct past omissions
- Calculate capital gains accurately
- Seek professional advice for complex schemes
Transactions after 1 January 2026 will be transmitted automatically, but prior omissions can still be corrected via standard recovery procedures.
Key takeaways
DAC8 does not introduce a new tax but ends a regulatory grey area. From 2026 onwards, authorities will have a consolidated view of crypto activity. Combined with AI-based analysis, this transparency will increase the likelihood that negligent taxpayers face adjustments. Anticipation and proactive reporting remain the best strategies for compliance.
This article was written with the input of our partners at Hashtag Avocats (HA).
