Bitcoin is no longer a marginal phenomenon. At the same time, the legal framework is constantly changing. From 1 January 2026, the EU's DAC8 directive will apply. This will make crypto transactions more transparent in terms of tax returns and reporting.

Important to know: This does not mean that every transaction is automatically a problem, but it does mean greater regulatory transparency.

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Was ist DAC8?

DAC8 stands for ‘Directive on Administrative Cooperation’ (eighth amendment). In short, the EU is expanding the existing rules on automatic cooperation between tax authorities so that platforms and service providers involved in crypto assets will also have to submit reports in future.

The aim is to enable tax and financial authorities to track who buys, exchanges or transfers which crypto assets and when, in order to curb tax evasion and grey areas.

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When will this come into effect and what exactly does it mean?

• The EU directive was already adopted on 17 October 2023.
  

• Member States must transpose it into national law by 31 December 2025 at the latest.
  

• From 1 January 2026, the data collection obligation will apply to crypto service provider.
  

• The first automatic data transfer between countries is expected to take place by 30 September 2027, based on the 2026 reporting year.
  

In short, anyone who buys, exchanges or transfers cryptocurrencies via a platform in 2026 could have their data exchanged between authorities in 2027.

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What data must be collected and reported?

The following data must be collected by Coinfinity for EU-based users and reported to the relevant Austrian tax authority per calendar year using a standardised form:

• Personal data: name, address, tax residency, tax number. For natural persons, date and place of birth.

• Aggregated reporting data per crypto asset and category
  
  • Purchase and sale against legal tender
  • Payouts to your self-custody wallet (because Coinfinity sends the purchased Bitcoin to the wallet address you specify)

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What does this mean for Coinfinity users?

At Coinfinity, self-custody is the focus: Bitcoin is stored by the users themselves, not by us.

For purchases via our app, this means specifically:

• We are legally obliged to collect the necessary data as required by DAC8.
  

• We only report what is required by law.
  

• We do not have access to private wallet keys and do not track movements that take place outside our platform. ‍
  

• When you buy Bitcoin via Coinfinity, the following applies: as much transparency as necessary, as much privacy as possible.

Important: If you also use other services or store Bitcoin outside the Coinfinity app, you should document transactions in a traceable manner. The authorities may ask questions based on the reports from these other platforms.

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What can you do?

Although the DAC8 directive primarily affects crypto service providers, it definitely makes sense for private individuals to keep clear documentation as well:

1. Back up your transaction history: Record or export purchase, exchange and transfer data: date, amount, equivalent value in Euro.
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2. Document wallet transfers: If you move Bitcoin between your own wallets, keep track of when and where. Even with self-managed wallets, later evidence can be helpful.
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3. Stay informed: Legislation, technical requirements and platform conditions are subject to change. Coinfinity provides transparent information about new developments in the app, blog and newsletter.
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Conclusion

The introduction of DAC8 is a step towards greater control in the European crypto market. Anyone who wants to continue offering their services must implement this, regardless of whether they agree with it or not. For you as an investor, this means that things will become a little more official and regulated. However, with Coinfinity, your Bitcoin remains your property, and data sharing only affects what is required by law.

Those who get their documents in order early on can remain calm and continue to handle Bitcoin in self-custody in a self-determined manner.