EU Launches Infringement Proceedings Against 12 Nations Over Crypto Tax Failures

The Commission Moves to ‘Stick’ Phase

The European Commission formally initiated infringement proceedings on Friday against 12 member states, including Spain, the Netherlands, and Poland, for failing to transpose the DAC8 crypto tax reporting directive. The action, part of the Commission’s January infringement package, signals the end of the implementation grace period as the bloc races toward full regulatory unification.

Brussels also singled out Hungary for a separate violation regarding the Markets in Crypto-Assets (MiCA) regulation, marking one of the first direct enforcement clashes between national AML laws and the new EU-wide crypto framework.

DAC8: The 12 Non-Compliant States

The 12 targeted jurisdictions. Belgium, Bulgaria, Czechia, Estonia, Greece, Spain, Cyprus, Luxembourg, Malta, the Netherlands, Poland, and Portugal missed the deadline to integrate DAC8 into national law. The directive, adopted in 2023, mandates that crypto-asset service providers (CASPs) automatically report user transaction data to tax authorities to curb evasion.

The directive requires member states to adapt to new developments… and effectively tackle identified conducts of tax fraud, tax evasion and tax avoidance.

These member states now have two months to respond. Continued failure to transpose the rules could escalate the matter to the Court of Justice of the European Union, potentially resulting in daily financial penalties.

Hungary’s MiCA Conflict

In a significant test of federal supremacy, the Commission issued a formal notice to Hungary regarding its national "exchange validation services" law. Brussels argues that Hungary’s unilateral amendments, purportedly designed to strengthen anti-money laundering (AML) safeguards, hinder the operation of MiCA-compliant service providers.

The Commission noted that the Hungarian law effectively forced some CASPs to suspend services, violating MiCA’s passporting rights which allow authorized firms to operate freely across the bloc. "Such measures must remain compatible with MiCA," the Commission stated, reinforcing that national security measures cannot override the single market’s regulatory architecture.

The Clock Ticks on July 2026

This enforcement blitz comes as the industry approaches the critical July 1, 2026 deadline, the date when MiCA’s grandfathering period ends for most jurisdictions. After this date, unauthorized entities can no longer operate in the EU. The aggressive stance on DAC8 and Hungary suggests the Commission is clearing regulatory debt to ensure the infrastructure for tax transparency and market access is functional before the transition window closes.