DAC-8 now in EU, Solutions?

[Don]

There are some structures available that could enable you to keep⁣ accounts at the exchanges but benefit from the exemption of reporting.

To provide an example:⁢
The CRS amendments allow for an optional new “Non-Reporting Financial Institution” category for genuine non-profit︀ entities if they satisfy certain conditions and undergo adequate verification procedures by tax authorities.

Representatives from the philanthropy sector have highlighted that this can lead to highly undesirable outcomes, requiring︁ genuine public benefit foundations to apply due diligence procedures in respect of all beneficiaries of︂ grant payments and report on grant payments to non-resident beneficiaries, such as for instance disadvantaged︃ students receiving scholarships. At the same time, concerns have been expressed by governments that simply︄ extending the carve-out from the Investment Entity definition to all non-profit Entities could give rise︅ to situations where Investment Entities would circumvent their reporting obligations under the CRS by improperly︆ claiming the status of non-profit Entities.

 

[DerAufklaerer]

The worlds most crpto friendly country is Singapoure

Exchanges:

PIonex
Bitget
Phemex

Bitget and Phemey‌ same Layouts in Login

 

[EliasIT]

It surprises me that they⁠ have managed to get it through and systematized already by 2026 - I must say⁤ it makes it less attractive to hold onto one's cryptocurrencies - the only thing that⁣ comforts me is that if you use some of these many anonymous wallets that still⁢ exist, they can't use that reporting for much.

Moreover, the tax law still applies in︀ Germany, if you buy 1 bitcoin and leave it untouched for 1 year, then the︁ profit on it is tax-free. So, in this respect, Germans do have an advantage compared︂ to many high-tax countries when they introduce the same system.

 

[abc123]

Lets say I have a Bybit account.
I use the Bybit only to deposit 3000‌ USDT a month from a cold wallet. I spend them online shopping using a virtual‍ mastercard. When 0 balance I reload with 3k again.
Will I become reported under DAC-8⁠ ?
I don't trade at all on this account and therefor I don't make any⁤ profit but I do have a maximum balance at 3k USD at a time and⁣ a total deposit (and spend) of 12x3000 = 36k a year.

Will I become reported⁢ under DAC-8 ?

 

[jafo]

So, you are getting a loan to︀ survive on a month to month basis as to not to burden the State and︁ that you will pay back when you finally finish your project/startup, right? 😉

 

[abc123]

One could think that however I⁠ just do not know who will be the lender of that loan...
But also it⁤ could be considered as salary since its coming in monthly which also could then mean⁣ it should be taxable. It would be a hard time proving otherwise as the proof⁢ needs to also be accepted by the counter part. Regardless of this.

The best thing︀ would be to have that go under radar and not having to explain anything at︁ any time soon as I do not make any profit on the account and my︂ balance is never above 3k USD at any stage.

The funds stays as crypto and︃ never turns into fiat. Therefor I wonder if my account will still be reported under︄ DAC-8 ?

 

[JackAlabama]

yes, most︂ likely it will be reported. Maybe there are reporting already taking place bc you use︃ the card, idk that however.
You can only be sure to avoid reporting if you︄ keep your name private.

 

[alain]

if your‍ crypto stays as crypto and never is exchanged to FIAT - very simple, just use⁠ a hardware or paper wallet.

 

[Matade]

How will this work with crypto cards?

Bybit, Blackcatcard, Crypto.com? Etc...

 

[mytoofood]

How does it not work? What's the point of your question?

 

[alain]

it does not work!

 

[mytoofood]

So you need a⁠ service offering private cards like it is around here and mentor group for instant. That⁤ is what you mean right?

 

[USDT]

but how can‍ one exchange crypto (e.g. BTC to USDT) in that case? Almost all exchanges either require⁠ KYC or have very low limits.

 

[zaybxc]

DEX - decentralized exchange like Uniswap.

 

[jafo]

P2P.
There are plenty! I have my own supply of "suppliers" who are NOT exchanges. I‍ don't know how they do it. I also will NOT ask them!
I will send⁠ my supplier a message about exchanging one BTC for USDT. He responds with 57K USDT,⁤ for example.
I tell him I'll take it and give him my USDT address. He⁣ sends me the 57K USDT.
I send him the BTC.
End of story!

 

[intlman]

Indeed. Got a few contacts like that here in HK who⁢ will happily do that for me too.

THORChain is another great one.

 

[Revoltec]

Anyone tried the decentralized exchange dYdX?