DAC8 Transition Period: Managing Pre-Existing Accounts

One of the most operationally challenging aspects of DAC8 implementation is managing accounts that existed before the directive's data collection requirements took effect. These pre-existing accounts were opened under different onboarding requirements, and the customer information on file may not include the data elements now required for DAC8 reporting. This article explains how to approach the transition period and the remediation of pre-existing accounts.

What Counts as a Pre-Existing Account

A pre-existing account is generally one that was maintained by the reporting entity as of December 31, 2025, the day before the first DAC8 data collection period begins on January 1, 2026. Any account opened on or after January 1, 2026 is considered a new account and should be onboarded with full DAC8 due diligence from the outset.

The precise definition may be refined by national transposition legislation, so reporting entities should verify the applicable cut-off date in each relevant jurisdiction.

The Data Gap Problem

When pre-existing accounts were opened, the onboarding process may not have collected all of the information now required under DAC8. Common gaps include:

• Taxpayer Identification Numbers (TINs). Many crypto-asset service providers did not historically collect TINs as part of account opening.
• Self-certifications of tax residence. Customers may not have been asked to declare their jurisdiction(s) of tax residence.
• Complete address information. Some accounts may have minimal or outdated address data.
• Entity classification. For non-individual accounts, the classification of the entity type and identification of controlling persons may not have been performed to DAC8 standards.

These gaps must be remediated to enable accurate reporting.

The Remediation Process

Remediation refers to the process of obtaining the missing DAC8-required information from pre-existing account holders. This is typically the largest single workstream in the transition period.

Step 1: Identify All Pre-Existing Accounts

Begin by generating a complete list of all accounts open as of the relevant cut-off date. Categorise them by account type (individual vs. entity), jurisdiction of the account holder, and the completeness of existing data.

Step 2: Assess Data Completeness

For each pre-existing account, compare the information currently on file against the full set of DAC8 data requirements. Identify which specific data elements are missing for each account. This gap analysis will determine the scope and priority of your outreach.

Step 3: Prioritise Outreach

Not all pre-existing accounts require the same level of effort. Consider prioritising based on:

• Likelihood of being reportable. Accounts that clearly involve customers resident in another EU member state should be prioritised.
• Transaction volume. High-volume accounts represent greater reporting exposure and should be addressed early.
• Existing data quality. Accounts with the largest number of missing data elements may require more effort and should be started sooner.

Step 4: Contact Account Holders

Reach out to pre-existing account holders to request the missing information. This typically involves:

• Sending a self-certification request explaining the new requirements and asking the customer to declare their tax residence and provide their TIN.
• Providing clear instructions and, where possible, a digital process to minimise friction for the customer.
• Setting a reasonable response deadline and planning follow-up communications for non-respondents.

Step 5: Follow Up and Escalate

Expect that a significant proportion of customers will not respond to the first outreach. Plan for multiple follow-up contacts using different channels (email, in-app notification, postal mail where applicable). Each follow-up should be documented.

For accounts where the customer does not respond despite reasonable efforts, the reporting entity must determine how to handle the account for reporting purposes. The directive and national legislation may provide guidance on how to treat accounts with incomplete data, including potential application of indicia-based approaches to determine tax residence.

Step 6: Document the Process

Regardless of whether each individual remediation effort succeeds, document the steps taken. Records of outreach attempts, customer responses (or non-responses), and the dates of each contact are essential evidence that the entity made reasonable efforts to comply.

Timelines for Pre-Existing Account Remediation

The directive does not prescribe a single deadline by which all pre-existing account remediation must be completed. However, since transactions involving pre-existing account holders during the 2026 reporting period are reportable, there is a strong practical incentive to complete remediation as quickly as possible.

Reporting entities should aim to have the bulk of pre-existing account remediation completed during 2026, so that the data needed for the first report is available when report preparation begins in early 2027. Where national legislation specifies a remediation deadline, that deadline must be observed.

Handling Unresponsive Customers

Despite best efforts, some pre-existing account holders will not provide the requested information. In these cases:

• Apply available data. Use whatever information is already on file, combined with any indicia available (such as the address on file or the country of the identity document), to make a reasonable determination of tax residence.
• Report what you can. Where a TIN is unavailable despite reasonable efforts, report the account with the available information and note the missing element. Some national schemas may include fields for indicating that a TIN was requested but not obtained.
• Consider account restrictions. Some reporting entities may choose to restrict account functionality for customers who do not provide required information within a specified timeframe. This approach should be considered carefully and in compliance with applicable laws.
• Continue efforts in subsequent years. Pre-existing account remediation does not end after the first cycle. Continue to request missing data from unresponsive customers in subsequent years.

Coordinating with New Account Procedures

While remediation focuses on pre-existing accounts, ensure that your new account onboarding process is robust. Every account opened from January 1, 2026 onward should be fully compliant with DAC8 requirements from the start, preventing the creation of new data gaps.

Practical Tips for the Transition

• Start early. Customer outreach campaigns take time, and response rates are typically low. Begin remediation well in advance of reporting deadlines.
• Simplify the customer experience. The easier it is for customers to provide the required information, the higher your response rate will be. Invest in a clear, simple self-certification process.
• Set realistic expectations. Achieving 100% remediation completion before the first filing is unlikely. Focus on maximising coverage and documenting your efforts.
• Leverage technology. Use automated workflows, reminders, and data validation tools to manage the remediation process at scale.

The transition period is temporary, but the work done during this phase sets the foundation for ongoing compliance. A thorough, well-documented remediation effort significantly reduces risk in the first reporting cycle and beyond.