EU Tightens Grip on Crypto Privacy with New Reporting Rules
The European Union is set to enforce stringent digital asset reporting requirements starting in 2026, marking a significant shift in regulatory oversight for crypto firms. The revised Directive on Administrative Cooperation (DAC8) mandates standardized transaction reporting from exchanges and wallet providers, amplifying concerns over diminished privacy protections.
Under the new rules, authorities will retain user data even after operators deregister, while the travel rule extends to self-custody wallets for transfers exceeding €1,000. Centralized EU supervision expands, creating friction with industry participants who argue the measures impose excessive surveillance on lawful transactions.
The Implementing Regulation (EU) 2025/2263 introduces fixed digital formats for disclosures, further institutionalizing monitoring capabilities. Market operators now face a compliance crossroads—adapt to heightened transparency demands or risk exclusion from the EU's financial ecosystem.
