DAC8 - Automatic Exchange of Information Reported by Reporting Crypto- Asset Service Providers (CARF & Amended CRS)

Brief Overview

DAC 8 provides for automatic exchange of information on crypto-assets between EU countries. It is the eighth amendment of the Directive on Administrative Cooperation in Direct Taxation.

The Directive lays down the rules and procedures for exchanging information on crypto-asset users by implementing due diligence procedures and reporting rules for operators active in crypto-asset transactions and their users. The rules are based on the OECD's international standard Crypto-Asset Reporting Framework (CARF). This Directive covers a broad scope of crypto-assets, building on the definitions set out in the European Crypto-Assets Regulation (MiCA). 

In addition, crypto-assets that have been issued in a decentralised manner, as well as stablecoins, including e-money tokens and certain non-fungible tokens (NFTs), are included within the scope of the directive. 

Furthermore, in view of the comprehensive review of the CRS made by the OECD and the resulting amendments made, DAC 8 also considers such amendments to the Standard. As a result, the scope of the CRS has been expanded to include specific electronic money products and central bank digital currencies. Further revisions have been made to ensure that indirect investments in crypto-assets, through derivatives and investment vehicles, are now subject to the CRS. In addition, amendments have been made to strengthen the due diligence and reporting requirements and to provide a carve out for genuine non-profit organisations.

Malta will be transposing DAC 8 by 31^st December 2025.