Latvia Approves New Crypto Tax Bill, Sets 2026 Deadline for DAC8 Compliance

Latvia has taken a decisive step toward regulatory clarity in the cryptocurrency sector with the approval of Bill No. 24-TA-3148. The legislation, greenlit by the Latvian Cabinet on June 3, aligns the country''s tax framework with the EU''s DAC8 directive and introduces stringent reporting requirements for crypto asset service providers.

The new rules mandate automatic data exchange under the Multilateral Competent Authority Agreement (MCAA), extending the Common Reporting Standard (CRS) to cover crypto assets, swaps, and electronic money products. Non-compliance carries heavy penalties, with fines reaching up to €14,000 for reporting failures.

This MOVE signals Latvia''s commitment to combating tax evasion in digital asset markets while providing a structured approach to cryptocurrency taxation. The legislation notably closes previous loopholes by formally defining reportable crypto assets and swaps.