DAC8 Scope: Which Transactions and Assets Are Covered?

One of the most critical questions for any crypto-asset service provider (CASP) preparing for DAC8 is: what exactly falls within the directive's reporting scope? Understanding which transactions must be reported and which crypto-assets are covered determines the scale and complexity of compliance. This article provides a detailed breakdown of DAC8's scope.

Covered Crypto-Assets

DAC8 defines its scope of crypto-assets by reference to the EU's Markets in Crypto-Assets Regulation (MiCA). Under this approach, a crypto-asset is any digital representation of a value or a right which may be transferred and stored electronically, using distributed ledger technology or similar technology.

Within this broad definition, DAC8 covers three main categories as classified by MiCA:

Asset-referenced tokens (ARTs) are crypto-assets that maintain a stable value by referencing several currencies, commodities, or other crypto-assets. These are commonly known as multi-collateral stablecoins.

E-money tokens (EMTs) are crypto-assets that maintain a stable value by referencing a single official currency. These include fiat-backed stablecoins such as those pegged to the euro or the US dollar.

Other crypto-assets encompass all crypto-assets that do not qualify as ARTs or EMTs. This is the broadest category and includes Bitcoin, Ethereum, and the vast majority of altcoins, utility tokens, and governance tokens.

Specific inclusions. DAC8 explicitly includes crypto-assets that can be used as a means of payment or for investment purposes. This captures the vast majority of actively traded crypto-assets.

Specific exclusions. DAC8 excludes central bank digital currencies (CBDCs), as these are issued by sovereign monetary authorities and fall under different regulatory frameworks. Crypto-assets that cannot be used for payment or investment purposes — such as purely functional tokens that grant access to a specific service with no secondary market value — may also fall outside the scope, though this determination requires careful case-by-case analysis.

Covered Transactions

DAC8 requires reporting of four categories of transactions:

Fiat-to-crypto exchanges. Any transaction in which a user exchanges fiat currency (euros, dollars, pounds, etc.) for a crypto-asset through a CASP. This includes both purchases and sales — buying Bitcoin with euros triggers a reportable event, and selling Bitcoin for euros triggers another.

Crypto-to-crypto exchanges. Any transaction in which a user exchanges one crypto-asset for another through a CASP. Swapping Ethereum for USDC, for example, is a reportable transaction for both the Ethereum and USDC sides of the trade.

Crypto-asset transfers. Transfers of crypto-assets between users facilitated by a CASP. This includes transfers from one user's account to another user's account on the same platform, as well as transfers to external wallets when the CASP has sufficient information to identify the transaction as a transfer rather than a withdrawal to the user's own wallet.

Retail payment transactions. Transactions where a crypto-asset is used to pay for goods or services. If a user pays a merchant using Bitcoin through a CASP-facilitated payment, both sides of the transaction are potentially reportable.

What Is NOT Covered

Understanding the boundaries of DAC8's scope is equally important:

Self-hosted wallet transactions. Transactions between self-hosted (non-custodial) wallets that do not involve a CASP are not directly reportable under DAC8. However, when a user deposits crypto-assets from a self-hosted wallet into a CASP or withdraws crypto-assets to a self-hosted wallet, the CASP must record and potentially report the transfer.

DeFi transactions. Transactions executed through purely decentralized protocols without any intermediary CASP are currently outside the direct scope of DAC8. However, if a CASP facilitates access to DeFi protocols (for example, through an integrated DeFi aggregator), those transactions may become reportable.

Mining and staking rewards. The generation of crypto-assets through mining or staking is not itself a reportable transaction under DAC8. However, if a CASP operates a staking service and distributes staking rewards to users, the receipt of those rewards may need to be tracked for subsequent reporting when the user later exchanges or transfers them.

Airdrops and hard forks. The receipt of crypto-assets through airdrops or as a result of hard forks is generally not a reportable transaction. However, any subsequent exchange or transfer of those assets through a CASP would be reportable.

Reporting Data Points

For each reportable user and each type of transaction, CASPs must report the following information:

User identification data includes full legal name, date of birth, address, each jurisdiction of tax residency, Tax Identification Number for each jurisdiction, and for entities, the legal entity identifier and information about controlling persons.

Transaction data includes the type of crypto-asset involved, the aggregate gross amount of the transactions in fiat currency equivalent, the number of units of the crypto-asset transacted, the aggregate fair market value at the time of each transaction, and the total number of transactions in the reporting period.

Account data includes any unique identifier or reference number associated with the user's account at the CASP.

Materiality and Thresholds

Unlike some other reporting frameworks (such as DAC7, which applies thresholds for platform sellers), DAC8 does not set minimum thresholds for reportable transactions. All transactions falling within the scope of the directive must be reported, regardless of their value.

This means that even a single transaction of minimal value triggers the full reporting obligation, including user identification, TIN collection, and self-certification. The absence of thresholds significantly increases the number of reportable users and the volume of data that CASPs must process.

Territorial Scope

DAC8's territorial reach extends beyond the EU's borders in certain circumstances. A CASP is subject to DAC8 reporting obligations if it is registered or licensed in an EU Member State, or if it provides services to EU-resident users. Non-EU CASPs that serve EU clients may be required to register in an EU Member State for DAC8 reporting purposes, particularly if they are also required to obtain MiCA authorization to serve the EU market.

Conclusion

DAC8 casts a wide net over the crypto-asset market. Its scope encompasses virtually all types of crypto-assets, all major categories of transactions, and all CASPs — whether based in the EU or serving EU clients from abroad. The absence of reporting thresholds means that compliance must be comprehensive, covering every user and every transaction without exception. CASPs must conduct a thorough scoping analysis to identify exactly which of their activities fall within DAC8 and ensure that their data collection and reporting systems are designed to capture every reportable event.