The proposal provides that crypto-asset service providers with an EU nexus will be required to report details of EU client transactions, while financial institutions will be required to report transactions involving e-money transactions and digital currencies. In addition, DAC8 also aims to extend the automatic exchange of advanced cross-border rulings to cover high-net-worth individuals who hold a minimum of €1 million in respect of investible wealth or wealth under management.
The proposal provides for certain common minimum penalties to be imposed in cases of non-compliance.
The proposed Directive is to be transposed into law by EU Member States by the end of 2023. However, the effective date is, per the current proposal, from 1 January 2026. This is later than we expected but, perhaps given that this area is constantly evolving, a longer lead in time to 1 January 2026 may be prudent.
The European Commission opened an eight week public consultation on the proposed Directive with responses to be presented to the European Parliament for consideration thereafter.
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