DAC8 from 2026: What the new crypto reporting obligation really means for German investors

The government draft for implementing EU Directive 2023/2226 has been available since August 15, 2025 – but what exactly changes for crypto users?

In early August 2025, the federal government presented its implementation draft for the DAC8 directive, which aims to increase tax transparency across Europe in the crypto sector. With the planned Crypto Asset Tax Transparency Act (KStTG), Germany will set a new standard for reporting obligations – not as a criminal offense, but as a structured reporting duty that gives tax authorities a better overview of tax-relevant transactions. The Federal Central Tax Office (BZSt) will become the hub for automated data exchange within the EU.

Who reports – and what happens to the data?

The KStTG obliges providers of crypto asset services – such as trading platforms, brokers, and custody services – to collect data and submit annual reports. They must identify their customers, obtain self-disclosures, store relevant transaction data, and transmit this information to the BZSt. From there, the data flows into an EU-wide exchange – a coordinated system designed to prevent double taxation and hinder tax evasion.

Specifically, holdings data (purchases, sales, deposits, and withdrawals via the service) as well as customer master data from verification are captured. This sounds comprehensive but is intentionally limited to the provider interface: Wallet-to-wallet transfers without intermediary services remain outside the scope. Only when a reporting platform is involved – for example, when transferring funds from an exchange to a private wallet – do reporting obligations arise. The DAC8 rules thus target service providers, not your private keys.

Timeline and financial scope: When does it become serious?

DAC8 obligations will take effect from 2026, with the first reporting season following. Until then, the draft must go through parliamentary procedures and the technical infrastructure must be built.

The government draft transparently quantifies the administrative effort:

• Economy: One-time compliance cost of around 9.3 million euros, then approximately 270,000 euros annually in operating costs
• Federal government: One-time implementation costs of about 31.9 million euros, ongoing around 10.5 million euros per year
• Citizens: Estimated one-time time investment of 234,000 work hours for documentation and data preparation

These figures illustrate: DAC8 is a significant compliance project that challenges markets, authorities, and private investors alike.

Context: What DAC8 is – and what it means for privacy

A common misconception: DAC8 is not about monitoring all payment flows nor banning self-custody. It’s about standardized tax transparency for regulated services. Your personal wallets are not subject to real-time control by DAC8. However: European frameworks like MiCA (Markets in Crypto-Assets), the Travel Rule, and DAC8 together form a structure that increases traceability in the regulated sector. Those who wish to remain completely anonymous must be aware of the legal consequences of this choice.

Practical checklist for investors – how to prepare

1. Organize documentation: Collect purchase and sale receipts, deposit/withdrawal proofs, and transaction histories from your platforms. Store everything systematically – this simplifies tax declarations and provides security.

2. Choose platforms consciously: Those trading via regulated exchanges and brokers will actually benefit from DAC8 – your data will be structured and accurate. This can help during audits.

3. Think about storage strategies: Separate your trading wallet (short-term holdings) from long-term holdings. For secure storage, hardware wallets or specialized custody solutions are worthwhile.

4. Explore product alternatives: Not interested in direct purchases? Bitcoin ETFs and structured products offer legal clarity and are subject to well-known securities rules instead of new DAC8 complexities.

Summary of the essentials

DAC8 is Europe’s response to the demand for greater tax transparency in the cryptocurrency industry. Starting in 2026, providers will report in a standardized way – this is not a surprise, but a predictable compliance standard. For you as a private investor, this mainly means: proper documentation, conscious provider selection, and clear separation between trading and long-term custody. Self-custody remains legal; DAC8 is not a general ban. Those who understand the basics and keep their records tidy will be fully prepared by 2026 – and can refocus on what matters: understanding the market and making informed decisions.