Denmark enacted Act No. 409 of 29 April 2025, aligning with EU Directive 2023/2226 (DAC8) to introduce new reporting and due diligence requirements for crypto-asset service providers.

Denmark has published Act No. 409 of 29 April 2025 in the Official Gazette, implementing Council Directive (EU) 2023/2226 (DAC8) and introducing new reporting and due diligence rules for crypto-asset service providers.

DAC8 is a new EU directive that broadens tax reporting requirements to cover crypto-assets and digital currencies. Its goal is to enhance transparency and strengthen efforts to combat tax fraud across member states.

DAC8 is based on the OECD’s Crypto-Asset Reporting Framework (CARF) and the updated Common Reporting Standard (CRS) for automatic exchange of financial account information.

The Common Reporting Standard (CRS), developed in response to the G20 request and approved by the OECD Council on 15 July 2014, calls on jurisdictions to obtain information from their financial institutions and automatically exchange that information with other jurisdictions on an annual basis. It sets out the financial account information to be exchanged, the financial institutions required to report, the different types of accounts and taxpayers covered, as well as common due diligence procedures to be followed by financial institutions.

The new obligations take effect from 1 January 2026, with initial reporting on transactions via crypto-asset service providers due in January 2027.

However, some provisions will not be applicable until 1 January 2028.

Earlier, the Danish Ministry of Taxation opened a public consultation on a draft bill to implement DAC8 and the Crypto-Asset Reporting Framework (CARF).