DAC8: Will EU Crypto Reporting Push Users to DEXs?

[vivi212]

Starting from January 1, 2026, the EU will implement DAC8 rules, requiring crypto exchanges and crypto service providers to report user data and transaction information to tax authorities.
This includes balances, trades, transfers, and identification details of EU residents. In practice, crypto in the EU is being treated more and more like traditional financial assets from a regulatory and tax perspective.
Do you think this will improve market legitimacy, or will it push more users toward DEXs and self-custody solutions?

[gunhell16]

This raises a concern for long-term investors. If a platform requires constant activity, how does that affect those who just want to 'buy and hold'
Or perform simple DCA?

Many local exchanges have policies where they freeze accounts due to inactivity. If OP's post is implying that active usage is mandatory, it might not be the best place for 'cold' storage or passive investing. Can anyone clarify if this specific exchange penalizes inactive accounts?

[vivi212]

As far as I know, DAC8 itself does not require users to be constantly active and does not force exchanges to punish inactive accounts. The regulation concerns the reporting obligations of service providers, not how often users make transactions or log in to the system. However, the inactive account policy is set by individual exchanges, so investors using buy-and-hold or DCA should still pay attention to the terms of each platform and consider self-storage if long-term inactivity is a concern.