Starting in January 2026, the rules of the game for cryptocurrency in Europe and the UK will change dramatically. Essentially, digital assets will be regulated almost as strictly as traditional banks—and in some aspects, even more rigorously.
If privacy is important to you, it's worth thinking in advance about where to store your coins. Exchanges will no longer be a "closed club"—every operation will be automatically recorded and transmitted to government authorities. Cold storage may become the only way to retain control over your data.
What Will Change
Under the DAC8 framework and the agreed-upon CARF standards, all crypto services will be required to disclose user information and transaction details to tax authorities.
These requirements will apply not only within a single country but also in a cross-border format. In other words, an exchange in one jurisdiction will have to report on users residing in another.
An important point: Previously, accessing your data required a warrant or court order. Starting in 2026, no request will be needed—the information will be sent automatically.
Combating fraud and money laundering will become easier.
Authorities will have a simpler time tracking financial flows and investigating crimes.
The main goal, in my opinion, is still taxation: the state wants to see every transaction and get its share.
Privacy will essentially disappear. Any purchase, sale, or transfer of coins will be known to the state.
P2P operations will remain, but if they go through intermediaries—and most do—then anonymity is already gone.
Even law-abiding users who pay their taxes will lose their right to privacy.
I don't break the law and I diligently pay my taxes, but it bothers me that someone can see every one of my transactions. Cryptocurrency was conceived as a tool for freedom and decentralization, but now it's being turned into just another segment of the banking system.
