Stricter Controls on Cryptocurrencies
As part of the DAC8 legislation, the government is strengthening the legal and tax framework surrounding cryptocurrencies.
Since January 1, 2026, all virtual asset service providers have been required to collect transaction data from their clients. They must also transmit this information to the tax authorities of each Member State in order to combat undeclared cryptocurrency transactions.
The information exchange mechanism operates in both directions: Luxembourg transmits data relating to its clients and, in return, receives information concerning its residents who use foreign platforms.
The results of the first exchanges of information between European tax authorities are expected to become visible in 2027.
This exchange framework forms part of a global initiative under the DAC8 Directive and will help Luxembourg strengthen its financial credibility.
Individuals who fail to declare their gains may be subject to tax penalties.