On January 1st, 2026, new rules for crypto transactions came into force in the EU. The most discussed ones are DAC8 and CARF – a global OECD framework for sharing information on crypto assets. What do these regulations mean in practice, who do they affect and when do the changes apply?
Note: This article is for informational purposes only and does not constitute tax advice. Readers should consult their own tax advisor for guidance specific to their situation.
CARF – the framework
CARF stands for Crypto-Asset Reporting Framework. It is an OECD standard that aims to regulate the international exchange of information about crypto transactions.
Put simply: crypto service providers like exchanges and brokers are expected to clearly identify customers, determine their tax residency, and record certain transaction data (e.g., buys, sells, swaps). This information is then reported to the national tax authority and can be automatically exchanged between participating countries.
CARF is basically the international counterpart to DAC8 and is expected to apply in more than 50 countries.
DAC8 – the EU reporting obligation
DAC8 is the EU’s implementation of the OECD’s Crypto-Asset Reporting Framework (CARF). While DAC8 is an EU directive, its scope is global and not limited to crypto service providers incorporated or physically based in the EU.
DAC8 requires crypto service providers to collect and report transaction and customer tax information relating to EU tax residents, regardless of where the service provider itself is located. Whether a provider is based in the EU, Switzerland, the United States, or elsewhere is therefore not decisive.
Crypto service providers that are not incorporated in the EU must generally register with and report to one designated tax authority in an EU member state. That authority then redistributes the relevant information to the EU member state(s) where the affected users are tax resident.
An important exception applies where the EU has concluded an international agreement with a third country that has implemented CARF. In such cases, a non-EU crypto service provider may report information on EU tax residents to its domestic tax authority, which will then exchange the data with EU member states under the applicable treaty.
Switzerland and the EU signed such an agreement on 20 October 2025. Once Switzerland has enacted CARF into national law, Swiss crypto service providers will report relevant user tax information directly to the Swiss tax authorities. Those authorities will then transmit the required data to EU member states.
Accordingly, once the Swiss CARF implementation is in force, Bittr will begin collecting the required tax information from its users and will report directly to the Swiss tax authorities, rather than to an EU tax authority.
When do DAC8 and CARF apply?
EU member states were required to implement DAC8 into national law by the end of 2025. As a result, relevant customer data is now being collected by EU providers as of January 1st, 2026, and will be transferred to tax authorities for the first time in 2027.
In parallel, the OECD’s global CARF framework has been introduced. Switzerland has announced it will adopt CARF, but not before 2027. This means Swiss crypto providers will face comparable reporting obligations at the earliest from 2027.
What data will be reported?
Crypto service providers that fall under DAC8/CARF must report a range of information. This includes, in particular:
- Customer identity: name, address, date of birth, tax ID.
- Transactions: buys and sells of Bitcoin and other crypto assets (including swaps or withdrawals into euros).
- Deposits and withdrawals: fiat deposits and crypto withdrawals.
- Custodian holdings: coin balances held with the provider at year-end.
- Account movements: transfers between customer accounts at the same provider.
Bitcoin purchases in Switzerland in 2026
If you buy via a Swiss provider, CARF does not apply yet. Switzerland will join the international CARF system, but as mentioned, not before 2027. Until then, no transaction data from Swiss companies will be automatically reported to foreign tax authorities.
For EU-based customers, this means: as long as you use a Swiss service, your Bitcoin purchases will not automatically be sent to your local tax office (for now).
Providers like Bittr continue to operate exclusively from Switzerland and are therefore not subject to EU reporting requirements (yet). We can continue our KYC-light model for now, where up to 999 CHF/€ no full identity verification is required.
What does this mean for Bittr?
For Bittr customers, everything stays the same in 2026:
- No automatic reporting: even for verified customers (bittr whales), we do not collect information for tax reporting. Bittr does not share customer data with tax authorities. As a Swiss company, we are currently not required by DAC8 or CARF to perform automatic tax reporting.
- Buying Bitcoin without KYC: up to 999 CHF/€ per 30 days, you can buy Bitcoin without completing a KYC process.
In short:
CARF: Crypto-Asset Reporting Framework (OECD standard) for international exchange of information about crypto transactions: providers must identify customers, determine tax residency, and record transaction data so it can be exchanged automatically between participating countries.
DAC8: EU directive that implements CARF in the EU: EU crypto providers must report customer and transaction data to national tax authorities, which then exchange this information within the EU (and potentially beyond to CARF members).
What happens at EU providers in 2026: Data collection started on January 1st, 2026 (KYC/tax residency + reporting-relevant transaction data). The actual transfer/exchange of data to/between tax authorities will start from 2027.
What applies to Bittr in 2026: Bittr, as a Swiss provider, is not covered by DAC8. CARF will take effect in Switzerland at the earliest from 2027. So 2026 stays the same: up to 999 CHF/€ per 30 days is possible without KYC; and even with KYC, Bittr does not collect data for tax reporting and does not yet share customer data with tax authorities.
