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DAC8 explained: utilizing cryptocurrency data for investigations


With DAC8, cryptocurrency data becomes a powerful asset for tax transparency, risk assessment and investigations. It provides new insights into user behaviour, undeclared cryptocurrencies and financial flows. DataExpert has a strong reputation in cryptocurrency investigations and is well-positioned to help organizations leverage DAC8 effectively.

But first, what is DAC8?

DAC8 is the European Union’s seventh amendment to the Directive on Administrative Cooperation (DAC), designed to combat tax evasion in the crypto-asset sector. It requires crypto-asset service providers (CASPs) to report customer and transaction data to tax authorities.

The rules apply broadly to cryptocurrency (hereafter: crypto) platforms, including exchanges, brokers, wallet providers and trading services, regardless of their size or location. CASPs based outside the EU must also comply if they offer services to EU users. Even decentralised or peer-to-peer platforms may fall within the scope of the directive.

EU member states are required to implement DAC8 by the end of 2025. Starting 1 January 2026, CASPs must begin collecting the relevant data. This information will be shared among EU tax authorities and potentially with non-EU countries, in accordance with the Organisation for Economic Co-operation and Development (OECD) and the global Crypto-Asset Reporting Framework (CARF).

What data must be reported?

Crypto-asset service providers are required to collect and report detailed information on each EU customer (also referred to as a "reportable user") and their crypto-related activities. This includes:

  • Identification details of individuals and legal entities: full name, address, tax identification number (including for ultimate beneficial owners), date of birth, and service provider information.
  • Type of crypto-asset involved.
  • Fiat-to-crypto and crypto-to-fiat transactions (metrics A-C-D apply).
  • Crypto-to-crypto transactions (metrics B-C-D apply).
  • Retail payments (exceeding USD 50,000 in a single transaction) (metrics B-C-D-E apply).
  • Transfers involving reportable users (metrics B-C-D-E apply).

Legend - reported metrics:

A. Aggregate gross amount paid/received
B. Aggregate fair market value
C. Aggregate number of units acquired/dusposed
D. Number of transactions
E. Subdivided by transfer type, if known


Which crypto-assets are covered?

DAC8 has a broad scope, covering nearly all crypto-assets as defined under the EU’s forthcoming Markets in Crypto-Assets (MiCA) regulation. This includes cryptocurrencies, stablecoins and most tokens traded as financial instruments. Certain non-fungible tokens (NFTs) also fall under DAC8, especially when used for investments or payments. Excluded are central bank digital currencies (CBDCs).

With DAC8 on the way, what can be done with this data and how can DataExpert help? 

The first step is building a crypto profile for a user: mapping behaviour, spotting anomalies and flagging potential risks. A crypto profile helps define what is typical, what deviates from the norm and when further investigation is needed. However, crypto behaviour is rarely a black and white-risk assessment requires context, nuance, and tailored analysis.

DataExpert can support this process by:

  • We provide expert training and support in crypto investigations, blockchain analysis and advanced on-chain transaction pattern mapping.
  • Providing access to industry-leading crypto investigation tools for real-time blockchain intelligence.
  • Assessing the source and destination of funds to identify potentially illicit activity, including links to mixers, high-risk services, or sanctioned entities.
  • Verifying whether crypto income and holdings have been accurately declared.
  • Reconstructing the development of wealth over time, including assessment of a user's historical accumulation of assets.
  • Identifying high-risk profiles (e.g., large transaction volumes, frequent withdrawals).
  • Linking digital activity to real-world identities and financial behavior using open source intelligence.

Want to learn more about how we can support your organization with DAC8 and crypto investigations? 
Get in touch with our cryptocurrency specialists  +31(0)683644172 or email us at crypto@dataexpert.nl