DAC8 Reporting for MiCA-Exempt Services

Certain crypto-asset services may be exempt from MiCA authorization under specific conditions. This article examines whether such exemptions also apply to DAC8.

MiCA Exemptions

MiCA provides exemptions or lighter requirements for certain categories, including intra-group services, services provided exclusively to professional investors in limited circumstances, and certain small-scale operators during transitional periods.

DAC8 Implications

MiCA exemptions do not automatically translate to DAC8 exemptions. DAC8's scope is determined by whether an entity provides reportable services (exchange, custody, transfer) to users who are tax residents of EU Member States. An entity that is exempt from MiCA licensing may still be subject to DAC8 if it facilitates reportable transactions.

CASPs should not assume that a MiCA exemption relieves them of DAC8 obligations. A separate analysis of DAC8's scope is required.

Practical Guidance

Entities operating under MiCA exemptions should assess their DAC8 exposure independently, taking into account the types of transactions they facilitate, the tax residency of their users, and the specific DAC8 transposition in their home Member State.

Conclusion

MiCA exemptions and DAC8 obligations are determined independently. CASPs must assess their DAC8 compliance requirements regardless of their MiCA authorization status.