Starting from 1 January 2026, the Directive on Administrative Cooperation in the field of crypto-assets (DAC8), adopted in 2023, will come into force. It will require service providers and platform operators to report to the State Revenue Service (SRS) on sellers of certain types of crypto-assets. As a result, the legal framework of the Republic of Latvia (RoL) is currently being updated to ensure compliance with the requirements of the Directive. A draft law has recently been prepared clarifying the application of exemptions in relation to the scope of information to be reported.
DAC8 framework
As previously outlined in our articles, DAC8 aims to provide tax administrations across the European Union (EU) with information on crypto-asset transactions and the individuals involved — specifically, sellers (i.e., persons engaging in selling activity through a reportable trading platform).
The information collected from each Member State will be used at the EU level to prevent potential tax evasion within the crypto-asset market.
The Directive will be transposed into Latvian national legislation through amendments to the Law On Taxes and Duties, Cabinet Regulation No. 210 of 14 April 2020, and other related Cabinet regulations. These amendments are currently in the external coordination process before being submitted for approval by the Cabinet of Ministers and the Saeima.
