As from 1st January 2026, the eight amendment to the Directive on Administrative Cooperation in Direct Taxaction (commonly referred to as "DAC 8") came into force across all European Union Member States.
DAC 8 was introduced in response to the accelerated increase in crypto investments over recent years. Indeed, the overarching objective of DAC 8 is to bridge the gap between traditional financing and the digital asset economy, allowing tax authorities to monitor and assess transactions in crypto in the same manner that bank accounts and traditional investments are presently assessed.
Through the introduction of DAC 8, crypto service providers must disclose detailed records of user activity including information about the users and the transactions. This is with the aim of improving visibility into crypto transactions and ensuring accurate taxation of such crypto related income.
The primary reporting obligations under DAC 8 apply to Reporting Crypto-Asset Service Providers ("RCASPs"). RCASPs generally include businesses carrying out one or more crypto-asset services, which may include:
The obligations extend to non-EU service providers that serve EU tax-resident users, who must register in a Member State and comply with DAC 8 reporting requirements.
Under DAC 8, crypto asset service providers are required to report information on EU tax resident users to their local tax authority, which is then automatically exchanged with other EU Member States. The regime covers a wide range of crypto assets, including cryptocurrencies such as Bitcoin, stablecoins, certain NFTs and e-money tokens, bringing crypto activities broadly in line with existing financial account reporting frameworks.
RCASPs must report:
Their own name, address, and tax identification number.
Name, address, tax residence, and tax identification number of reportable users. For persons in the forms of entities, the same information for each controlling person must also be reportable.
Type of crypto-asset, gross amounts paid or received, number of transactions, and other relevant transaction details.
This requires RCASPs to have robust systems and processes for accurate user identification, transaction monitoring, and reporting to tax authorities.
DAC 8 represents a significant shift in the regulation and taxation of digital assets, with wide-ranging implications for both crypto service providers and their users. By bringing crypto-assets into a reporting framework comparable to traditional financial accounts, the directive increases transparency and exposes previously opaque crypto transactions to scrutiny by tax authorities. For service providers, this means that robust systems and processes must be in a place to accurately identify users, monitor transactions, and comply with reporting obligations, while non-compliance could result in penalties or reputational risk.
For EU tax-resident users, DAC 8 ensures that crypto-related income is subject to proper taxation and cross-border information sharing, highlighting the need for accurate record-keeping and transparency. Early preparation and proactive compliance are therefore essential, as they allow businesses to mitigate risk, maintain credibility with regulators, and confidently operate within Malta's evolving digital economy.
It is expected that Malta enacts the provisions of DAC 8 into the local legislative framework in the coming weeks. In this regard, further procedural details are expected from the Malta Tax & Customs Administration through the publication of the DAC 8 guidelines which should provide further clarity regarding the registration process and the reporting requirements.
DAC 8 marks a paradigm shift in the taxation of digital assets, placing crypto-asset service providers under a level of scrutiny comparable to traditional financial institution. Grant Thornton is uniquely positioned to assist clients in navigating this transition, offering end-to-end support from regulatory assessment and system design to operational implementation and ongoing compliance. Reach out to us to help you prepare proactively for this change.
Our team is here to help you navigate DAC 8 and the growing regulatory requirements for digital assets in Malta. We'll work with you to clarify your obligations, assess your readiness, and support you through the steps needed to achieve compliance.
Speak to our specialists to understand how these changes may impact your business and how to prepare with confidence.
