Bulgaria’s National Assembly has unanimously voted to adopt the EU’s DAC8 directive, aligning the country’s crypto tax reporting rules with European Union standards despite an eight-month delay. The legislation, finalized on September 9, mandates that crypto platforms register with the National Revenue Authority and collect user data including identities and transaction volumes starting January 2026. Cross-border sharing of tax reports is expected to begin in January 2027, with non-compliance potentially resulting in account restrictions. Bulgaria, ranked 19th in EU crypto adoption, must now balance transparency with user safety concerns.
Bulgaria has adopted the EU’s DAC8 directive on crypto tax reporting, with the National Assembly voting unanimously on September 9 to amend the country’s Tax and Social Security Procedure Code. The directive, first floated in late 2025, required EU member states to implement it by January 2026, a deadline Bulgaria missed by over eight months.
The new rule mandates that crypto platforms register with the National Revenue Authority (NRA) and begin collecting user information from January 2026. Targeted data includes user identities and traded or transferred volume, in both crypto and fiat.
Providers must report all types of transactions, ensuring both crypto-to-fiat and crypto-to-crypto trades are covered under the new regime. Additionally, any external withdrawals to self-custody wallets must be captured, though internal transfers between self-custody wallets are not subject to the rule.
This tracking of external withdrawals mirrors the FATF’s anti-money laundering (AML) push for greater transparency in DeFi transfers. The first cross-border sharing of crypto tax reports is expected to begin in January 2027, with non-compliance potentially leading to account restrictions.
The EU’s AML package targeting crypto is also scheduled to go live in mid-2027, indicating the bloc’s aim for full traceability of crypto transactions across the region by next year. Bulgaria currently ranks 19th across the EU for crypto adoption, and it remains unclear whether the new rules will foster growth or stifle it.
Notable risks associated with cross-border crypto tax reporting include data breaches and the likelihood of wrench attacks against victims. France is currently dealing with physical attacks and crypto kidnappings linked to a tax authority hack.
