Schválení DAC 8 – oznámení transakcí s kryptoaktivy – se blíží

Approval of DAC 8 - notification of cryptoasset transactions - is imminent

We have previously informed you about the DAC 8 initiative - automatic exchange of information regarding cryptocurrency transactions (more details HERE). In April 2024, a draft Czech implementation of DAC 8 was published and will now be discussed in the Chamber of Deputies[1]. Below we briefly summarise the novelties introduced by this amendment.

Cryptoassets

The term notified crypto-asset should include any cryptoasset other than:

• Central Bank Digital Money;
• Electronic money (essentially in the sense of the Payment Act, e.g. money in a bank account);
• Cryptoassets that cannot be used for payment or investment purposes;

In general, the scope of cryptoassets to be notified is broader than the scope covered by MiCA Regulation[2], and corresponds to the definition of a virtual asset under the AML Act[3].

The amendment further introduces the concept of a reportable transaction. In simplified terms, these are (i) an exchange transaction (an exchange between money and a cryptoasset, or an exchange between cryptoassets with each other), (ii) a transfer (debiting cryptoassets from an account, or crediting cryptoassets to an account) and (iii) a reported retail transaction (a transfer as payment for goods or services with a value greater than USD 50,000).

Notifying provider and notified user

The amendment provides for two categories of notifying service providers:

• Cryptocurrency-related service provider, i.e. a MiCA Regulation provider;
• Cryptoasset Provider - a residual category, where anyone who provides a cryptoasset-related service under MiCA Regulation where they perform an exchange transaction for a Notified User will fall.

A Notified User is generally a customer of a Notifying Provider for the purpose of conducting Notifiable Transactions who is also not exempt from notification (e.g., government entities, financial institutions and listed companies).

Submission of a notification

The amendment also modifies the registration obligation for cryptoasset operators based on the level of establishment. A provider of cryptoasset-related services is not required to register, as this obligation is already covered by the MiCA Regulation. The notifying provider fulfils its notification obligation in the state in which it is registered

The notification generally contains the details of the notifying provider, the details of the notified user and a summary of the transactions to be notified. The notification shall be submitted electronically for a calendar year period by 30 April of the year following the year for which the notification is submitted. The competent tax authority shall be the Specialised Tax Office.

Similar to DAC 7, a list of non-cooperative crypto-asset operators will be introduced. Entry on this list means, inter alia, that the tax administrator will be able to prohibit an uncooperative cryptoasset provider from providing cryptoasset-related services. If even this prohibition does not lead to a remedy, the tax administrator will have the possibility to issue a general measure prohibiting the notified users from using the services of the non-cooperating operator.

Penalties are set at up to CZK 1.5 million for non-compliance with individual obligations under this Act.

The draft law passed the comment procedure without any major changes and we do not expect any major changes in the further course of the legislative process, as it is a transposition of an EU directive. We will continue to keep you informed of further developments.

If you have any questions, please contact the authors of the article or the members of the EY team with whom you are working.

Authors:

Karel Hronek

Marek Řehoř

Jan Šulc

[1] Draft Amendment to Act No. 164/2013 Coll., on International Cooperation in Tax Administration - Parliamentary Print 781

[2] REGULATION (EU) 2023/1114 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 31 May 2023

[3] Section 4(9) of Act No. 253/2008 Coll., on certain measures against the laundering of the proceeds of crime and terrorist financing