DAC8 Transposition in Germany: Timeline, Status, and Requirements

Germany is one of Europe's largest crypto-asset markets, with millions of users and a significant number of licensed CASPs operating under the supervision of the Federal Financial Supervisory Authority (BaFin). The transposition of DAC8 into German law has far-reaching implications for the country's crypto industry and its established tradition of rigorous tax enforcement.

Germany's Crypto Market Landscape

Germany has long been considered one of the most crypto-friendly jurisdictions in Europe. Its regulatory framework, anchored in the German Banking Act (Kreditwesengesetz — KWG), was among the first in the EU to recognize crypto-assets as financial instruments and to require licensing for crypto custody services.

BaFin has been actively licensing crypto service providers since 2020, when Germany introduced its crypto custody license requirement. As of 2025, dozens of CASPs hold BaFin licenses, ranging from major exchanges to specialized custody providers and crypto-focused banks.

This existing regulatory infrastructure gives Germany a head start in implementing DAC8, as many CASPs already have established relationships with BaFin and experience with regulatory reporting requirements.

Legislative Process and Timeline

Germany's transposition of DAC8 falls under the responsibility of the Federal Ministry of Finance (Bundesministerium der Finanzen — BMF). The ministry is responsible for drafting the legislation that implements the directive into German tax law.

The German legislative process typically involves the publication of a draft bill (Referentenentwurf) by the BMF, consultation with industry stakeholders and other government ministries, submission to the Bundestag (federal parliament) for debate and adoption, approval by the Bundesrat (federal council representing the states), and publication in the Federal Law Gazette (Bundesgesetzblatt).

Given the December 31, 2025, transposition deadline, the BMF has been working to ensure that the necessary legislation is in place on time. Germany has historically been diligent about transposing EU tax directives within the required timeframes.

Key Features of Germany's Implementation

Competent authority. The Federal Central Tax Office (Bundeszentralamt für Steuern — BZSt) is expected to be the competent authority for receiving DAC8 reports from CASPs, consistent with its role as the central point for international tax information exchange under existing DAC directives and CRS.

Integration with existing reporting. Germany already requires financial institutions to report under CRS (implemented through the Financial Account Information Exchange Act — FKAustG). The BMF is expected to integrate DAC8 reporting into this existing framework, potentially through an amendment to the FKAustG or through standalone legislation that mirrors its structure.

TIN requirements. Germany assigns Tax Identification Numbers (Steuerliche Identifikationsnummer — IdNr) to all individuals registered in Germany. CASPs operating in Germany are already familiar with TIN collection from CRS compliance, which should facilitate the transition to DAC8's TIN requirements.

Crypto-specific tax context. Germany has a well-developed body of tax guidance on crypto-assets. The BMF published comprehensive guidance on the income tax treatment of crypto-assets in May 2022, covering mining, staking, lending, and trading. DAC8 transposition will complement this guidance by ensuring that tax authorities have the data needed to verify compliance.

Penalties and Enforcement

Germany is known for its rigorous approach to tax enforcement. While the specific penalties for DAC8 non-compliance will be determined by the transposition legislation, they are expected to be consistent with Germany's existing penalty framework for tax reporting violations.

Under German tax law, penalties for failure to file required information reports can include fines of up to €25,000 per violation, additional penalties for deliberate non-compliance or obstruction, and potential criminal prosecution in cases of tax evasion facilitated by non-reporting.

BaFin may also consider DAC8 compliance as part of its supervisory assessment of licensed CASPs, creating a dual enforcement mechanism that encompasses both tax and prudential oversight.

Impact on German CASPs

For CASPs already licensed by BaFin and compliant with CRS reporting, DAC8 will require incremental adjustments rather than a complete overhaul. The main areas of additional effort include extending TIN and self-certification collection to crypto-asset users who may not have been covered by CRS, implementing crypto-specific transaction categorization (fiat-to-crypto, crypto-to-crypto, transfers, payments), adopting the DAC8/CARF XML schema, which differs from the CRS XML schema, and establishing processes for the look-back review of existing users.

For newer or smaller CASPs that have not previously dealt with international tax reporting, the compliance challenge will be more significant, potentially requiring investment in new systems, external consulting support, or third-party reporting solutions.

Cross-Border Considerations

Germany's position as a major crypto market means that German CASPs serve users across the EU and beyond. DAC8's automatic exchange mechanism will ensure that transaction data for non-German users is shared with their home tax authorities, increasing the visibility of cross-border crypto activity.

Conversely, German tax authorities will receive data from CASPs in other EU Member States about German users who trade on foreign platforms. This bidirectional flow of information will significantly enhance the Finanzamt's ability to identify unreported crypto income by German taxpayers.

Practical Recommendations for CASPs in Germany

CASPs operating in Germany should begin by reviewing BZSt communications and BMF publications for specific technical guidance on DAC8 implementation. They should assess their current CRS compliance infrastructure for adaptability to DAC8 requirements, engage early with their BaFin supervisory contact to understand how DAC8 compliance will factor into ongoing supervision, plan for user communication campaigns to collect missing TINs and self-certifications from existing users, and test XML report generation well before the first filing deadline.

Conclusion

Germany's combination of a mature crypto market, established regulatory infrastructure, and rigorous tax enforcement tradition means that DAC8 transposition will be both thorough and strictly enforced. CASPs operating in Germany should treat DAC8 compliance as a high priority and leverage their existing CRS and BaFin reporting experience to build an efficient and robust compliance framework.