Crypto is no longer invisible to the tax authorities

Since the beginning of this year, the EU’s DAC8 Directive has been in force, introducing new rules on the automatic exchange of tax information which, for the first time, specifically cover crypto-assets.

What does this mean?

In short, crypto-asset service providers that fall within the scope of DAC8 – such as crypto exchanges – must now collect and report information on certain transactions carried out by their clients to the tax authorities.

Tax administrations in the EU will automatically receive data on:

• Who is trading – names, addresses, tax identification numbers, and the country where the person is tax resident;
• What is being traded – specific crypto-assets, including stablecoins and certain NFTs;
• At what value – aggregated data on purchases, sales, exchanges between crypto-assets, and transfers.

The first automatic exchange between tax administrations is expected by 30 September 2027, covering transactions carried out in 2026.

At the same time, several important steps have already been taken in Bulgaria:

• the Markets in Crypto-Assets Act regulates the national framework for licensing crypto-asset service providers under MiCA;
• the Multilateral Agreement (CARF) has been ratified, creating a basis for the international exchange of information with partner jurisdictions outside the EU as well;
• amendments to the Tax and Social Security Procedure Code, which are intended to regulate in detail the reporting and exchange of this information, have already been submitted to the National Assembly.

And one important question: does this framework create new tax obligations for crypto holders?

The answer is: No – income from trading in crypto-assets remains subject to declaration and taxation as before, but the new regulation gives tax administrations significantly more information.

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