European DAC8 law compels crypto exchanges to report user transactions to tax authorities

Under the updated European DAC8 directive (Law Decree 194/2025), cryptocurrency exchanges operating in Italy must report all user transaction movements to the Agenzia delle Entrate, while users are required to declare their holdings and capital gains. From 2026 exchanges will collect data, in 2027 they will transmit it to national tax authorities, and in the following year the first automatic data exchange between countries is scheduled to begin, applying banking-style transparency to crypto accounts.