The European Union will mandate in 2026 that cryptocurrency exchanges report detailed user transaction data and balances.

According to a report by Finance Feeds, as reported by Techub News, the European Union has fully implemented the DAC8 directive and regulations governing the cryptocurrency market. From January 1, 2026, all cryptocurrency service providers operating within the EU or serving EU resident clients must report detailed transaction data and user balances to national tax authorities. Under the new regulations, exchanges must collect and verify the complete identity information of each user on their platforms, including tax identification numbers and place of residence. This data will be automatically exchanged among all 27 member states, enabling tax authorities to conduct real-time audits and cross-check cryptocurrency earnings with personal income tax returns, significantly reducing potential tax evasion loopholes.