Tax consultancy

The DAC8 Directive is an EU regulation on administrative (tax) cooperation regarding the automatic exchange of information on cryptocurrency transactions. The introduction of these regulations is a response to the dynamic growth of the crypto-asset market and the need to tighten tax systems across the European Union. For entities operating in the Web 3.0 industry and institutional investors, DAC8 marks the entry into a new era of reporting, where transparency of operations becomes a standard required by tax authorities. Since the directive's implementation, not only accurate tax settlements but, above all, meeting rigorous reporting requirements has become crucial, allowing the tax authorities to continuously monitor capital flows in the digital world.

Unlike existing reporting obligations, professional preparation for DAC8 requirements relies on integrating AML/KYC procedures with tax reporting systems. Our support includes, among other things, identifying reportable transactions and verifying users' tax residency. Transaction data must be accurately recorded, covering both cryptocurrency trading and stablecoin operations.

Many aspects of the DAC8 directive, including penalties for non-reporting and its link to the global CARF (Crypto-Asset Reporting Framework) standard, raise significant concerns regarding compliance costs and data security. BTTP offers support that mitigates these uncertainties by implementing internal audit procedures and verifying the accuracy of customer information collection processes. We assist in interpreting the regulations governing crypto-asset service providers (CASPs), ensuring full compliance with the new regulations from the transaction planning stage.