April 30th, 2026
On March 27th, 2026, the law transposing the EU Directive 2023/2226 (DAC8) into the Cyprus legal framework was passed, extending due diligence and reporting duties on Crypto-Asset Service Providers and Crypto-Asset Operators (RCASP) under the Common Reporting Standard (CRS Law) to mandatory tax reporting on crypto assets and an automatic exchange information for some advance cross-border rulings on high-net-worth individuals. Furthermore, the Law amends the domestic legislation on mandatory disclosure rules (MDR) for reportable cross-border arrangements (DAC6).
The DAC6 Law is amended to reflect the Court of Justice of the European Union’s (CJEU) judgment in case C 694/20, dated 8 December 2022. As such, lawyers bound by legal professional privilege (LPP) are no longer required to notify other intermediaries but must still inform their own clients/the relevant taxpayers on their reporting obligations. DAC 8 applies retroactively as of 1 January 2026.
The law applies to entities licensed in Cyprus by the relevant competent authority under the European Union’s (EU’s) Markets in Crypto-Assets Regulation (MiCAR) or entities that provide Crypto-Asset Services under MiCAR but are not required to register for MiCAR (Crypto-Asset Operators) as long as they are tax residents of Cyprus, and/or incorporated in Cyprus, and/or managed from Cyprus, or have their usual place of business in Cyprus.
Reportable transactions on crypto-assets include exchange transactions or transfer of Reportable Crypto-Assets. Reporting crypto-asset business and services includes:
- managing a trading platform for crypto-assets.
- custody and administration of crypto-assets on behalf of clients.
- execution of orders for crypto-assets on behalf of clients.
- exchange of crypto-assets for funds.
- providing advice or portfolio management on crypto-assets.