European Commission Clarifies Scope of CARF/DAC8 Applies to Both Resident and Non-resident Customers of Reporting Crypto-Asset Service Providers
Earlier this week, the European Commission made an important clarification on the scope of DAC8 reporting requirements for Reporting Crypto-Asset Service Providers operating in European Union member states. DAC8 is the European Union’s (EU’s) implementation of the Crypto-Asset Reporting Framework, a global standard developed by the OECD that establishes foundational tax information collection and reporting requirements for companies operating in the digital asset sector. Over 75 jurisdictions have committed to implement the CARF by the end of 2027.
On its official website for DAC8 implementation, the European Commission recently confirmed that DAC8 data collection requirements apply with respect to all EU-resident users, including residents of the Member State where a Reporting Crypto-Asset Service Provider is established, as of 1 January 2026.
Implications for CARF/DAC8 Reporting Requirements
The scope of DAC8 represents an important departure from information reporting requirements such as the Common Reporting Standard (CRS) or U.S. FATCA rules, which only apply with respect to non-resident customers of a financial institution. This means that CARF reporting requirements will apply to a significantly larger number of customers of EU-based Reporting Crypto-Asset Service Provider’s than is the case for CRS or FATCA. Furthermore, because tax authorities will be relying on CARF information for their domestic users, Reporting Crypto-Asset Service Providers can expect enhanced scrutiny of their information collection and reporting compliance platforms.
It is important to note that European Union member states are not the only jurisdictions to adopt CARF for domestic reporting purposes. For example, implementing legislation in Brazil, Indonesia and the United Kingdom sets out that Reporting Crypto-Asset Service Providers must also collect information on both resident and non-resident customers. As more jurisdictions bring their CARF reporting requirements online, it is likely that this list of jurisdictions will continue to grow.
How Taxbit Can Help
The frequency of these updates highlights the importance of working with a trusted provider like Taxbit – who is consistently monitoring implementing legislation in jurisdictions and identifying whether any updates are required to our existing solutions to ensure you are compliant with the latest approach.
If you’d like to learn more about the updated draft or how Taxbit can support your needs, reach out to our team to schedule a call or demo.
.png)
