DAC 8 and beyond: crypto asset reporting and automatic exchange of information

With a clear focus on crypto assets, Luxembourg has further strengthened its position at the forefront of European tax transparency and compliance for the digital asset economy in line with the OECD framework.

The Luxembourg law of 27 March 2026 (draft law No. 8592) transposes Council Directive (EU) 2023/2226 of 17 October 2023 (commonly referred to as DAC 8) and updates several Luxembourg laws governing the exchange of information (the Law). 

Transposition of DAC 8

DAC 8 follows the adoption in 2023 of Regulation (EU) 2023/1114 of the European Parliament and of the Council of 31 May 2023 on markets in crypto-assets (MiCA), which established the EU regulatory framework for crypto-assets. Notably, DAC 8 aligns its key definitions and terminology with MiCA to ensure coherence across the EU’s regulatory landscape.

DAC 8 introduces a three-step compliance process for crypto-assets service providers (CASPs):

• due diligence procedure: CASPs are required to collect and verify the crypto-assets users' information
• reporting obligations: CASPs must report information regarding crypto-assets users to the competent authority of the European Union member state where the CASP is established or registered. Reporting CASPs must register with the Luxembourg tax authorities and annually file information by 30 June of the following year. For example, the first report (even nil) relating to 2026 will be due by 30 June 2027.
• automatic exchange of information: The authority receiving the information must transmit it to the corresponding authority in the country where the reportable crypto-asset user resides, through automatic exchange of information

The Law includes some penalties, including a fixed €5,000 fine for registration or filing failures and up to €250,000 for material due diligence or reporting breaches discovered upon audit. 

Any reporting CASP must register with the Luxembourg tax authorities and obtain a unique registration number.

For more information on the potential impact DAC 8 may specifically have on investment funds, read our previous article: How DAC 8 affects crypto assets in investment funds.

Other modifications of DAC 8

Country by country (CbC) reporting 

The Law updates the national CbC reporting framework so that, for taxable periods beginning on or after 1 January 2028, the tax identification number of the relevant persons (including the ultimate parent, group entities and other reportable entities) must be included in the information transmitted between tax authorities.

Extension of the Common Reporting Standard (CRS) scope

The Law revises the definitions of "Depository Institution" and "Depository Account" to incorporate e-money products and central bank digital currencies, so that an entity holding e-money products or central bank digital currencies could be classified as a reporting financial institution and comply with CRS reporting obligations.

Extension of automatic exchange of certain advance cross border rulings  

The Law extends the automatic exchange of information on certain advance cross border rulings (including advance pricing agreements) to cover individuals beneficiaries (no longer corporate taxpayers only).

DAC 6 and legal professional privilege

The Law amends the Luxembourg law of 25 March 2020 implementing the obligations under Directive (EU) 2018/822 re the automatic and compulsory exchange of information in the field of taxation related to reportable cross-border arrangements (DAC 6) to reflect the ECJ’s Orde van Vlaamse Balies case (C-694 / 20).

As a result, lawyers who are covered by legal professional privilege and are therefore exempt from DAC 6’s direct reporting obligation are now required only to inform their own client of any DAC 6 reporting requirement, without having to notify any other intermediaries involved in the arrangement.

New automatic exchange obligation for life insurance proceeds  

The Law introduces a new automatic exchange obligation for income from life insurance products paid to beneficiaries who are resident in another European Union member state from the deceased policy holder, where the contracts are not already reportable under the CRS based framework.

Retroactive application  

The law applies retroactively from 1 January 2026, meaning CASPs must reconstruct and / or retain the relevant data for the entire 2026 period.

How Ogier can help

If you have any questions or require further clarification in relation to DAC 8, reach out to our tax team experts – who have a significant expertise in crypto assets, investment funds tax structuring and tax compliance – using the contact details below.

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Disclaimer

This client briefing has been prepared for clients and professional associates of Ogier. The information and expressions of opinion which it contains are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.

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