Luxembourg adopts DAC 8 law to tackle crypto tax evasion
On March 19, 2026, Luxembourg adopted the Directive (EU) 2023/2226 of the Council of 17 October 2023 amending Directive 2011/16/EU on administrative cooperation in the field of taxation (DAC 8), designed to enhance tax transparency and combat tax evasion in the rapidly growing cryptocurrency market.
Starting in 2026, all cryptocurrency exchanges operating within the EU will be required to collect and report detailed transaction data from users — including investment amounts, sale prices, and realized gains. This information will be automatically shared with tax authorities in EU member states and beyond. Luxembourg will report data on foreign clients to other countries, while also receiving similar information on its own residents using foreign platforms.
This move aligns with the EU’s broader strategy to tackle tax evasion, money laundering, and the anonymity often associated with cryptocurrency transactions. By integrating crypto transactions into the same automatic information exchange system used for banking data since 2015, the EU aims to close tax loopholes and ensure better oversight and compliance.
The DAC 8 law adheres to the OECD’s Crypto-Asset Reporting Framework (CARF), setting global standards for tracking crypto transactions. Luxembourg sees this as a crucial step in reinforcing its credibility and continuing its commitment to international tax cooperation. With 75 countries, including 48 by 2026, onboard with this global initiative, transparency in the crypto space is set to improve significantly.
This regulatory shift represents a significant step in modernizing fiscal oversight and addressing the risks of financial opacity in digital finance. As the crypto industry continues to evolve, be prepared for stricter reporting requirements starting in 2026 and beyond. The adoption of DAC 8 signifies a key milestone in the EU’s push for global tax transparency.
Photo – A. Grange
