EU cryptocurrency tax filing will begin in January; violations could result in asset confiscation.

[EU Crypto Tax Filing to Take Effect in January; Violations May Lead to Asset Confiscation] According to a report by CoinDesk on December 24th, the EU's newly introduced digital asset tax transparency regulation will officially take effect on January 1, 2026, marking a significant shift in the way crypto activities are regulated across the EU. This regulation, known as DAC8, expands the scope of application to crypto assets and related service providers, building upon the EU's long-standing framework for tax administrative cooperation. Under the new rules, crypto asset service providers (including trading platforms and brokers) must collect and report detailed information about users and their transactions to their national tax authorities, and this data will be shared among member state tax authorities. For crypto users, the enforcement consequences of the new regulations are more severe. Once tax authorities discover tax evasion or avoidance, DAC8 allows local regulators to take action with the assistance of corresponding departments in other EU countries. This cross-border cooperation also includes the power to freeze or confiscate crypto assets related to unpaid taxes, even if the assets or platform are not located in the user's jurisdiction.