Identifying and Classifying Crypto-Assets for DAC8

Category: Troubleshooting Last Updated: 2026-02-12

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Overview

One of the foundational challenges in DAC8 compliance is determining which crypto-assets fall within the scope of the reporting framework. DAC8 does not apply to all digital or virtual assets. The directive defines "Relevant Crypto-Assets" with specific criteria, and certain categories are explicitly excluded. Correctly identifying and classifying each asset on your platform is essential to ensure you report what is required and do not over-report or under-report. This article provides a practical approach to making these determinations.

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Problem: Determining Whether an Asset Is a "Relevant Crypto-Asset"

Cause

The crypto-asset ecosystem is diverse and evolving rapidly. New types of tokens and digital assets emerge regularly, and the line between what is and is not a "Relevant Crypto-Asset" under DAC8 can be unclear for certain asset types.

The DAC8 Definition

Under DAC8, a Relevant Crypto-Asset is generally defined as a digital representation of value or rights that can be transferred and stored electronically using distributed ledger technology or similar technology. This definition is intentionally broad and is aligned with the definition used in the EU's Markets in Crypto-Assets Regulation (MiCA), though DAC8 has its own scope considerations.

Key Characteristics

An asset is likely in scope if it:

• Uses distributed ledger technology (DLT) or a similar technology.
• Can be transferred between holders.
• Can be stored electronically.
• Represents value or rights.

Fix: Apply a Structured Classification Process

1. Start with the definition. For each asset on your platform, assess whether it meets the general criteria above.
2. Check the exclusion list. Even if an asset meets the general definition, it may be excluded from DAC8 scope. See the exclusion categories below.
3. Document the classification. For each asset, record your conclusion (in scope or out of scope) and the reasoning behind it.

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Problem: Distinguishing Excluded Assets

Cause

DAC8 excludes certain categories of crypto-assets from reporting. The exact exclusions should be verified against the directive text, but the commonly cited exclusions include:

• Central Bank Digital Currencies (CBDCs). Digital currencies issued by central banks are generally excluded, as they are treated as fiat currency equivalents.
• Electronic money (e-money) tokens that meet specific criteria under existing financial regulations may be excluded, depending on how they are classified under MiCA and national law.
• Crypto-assets that the RCASP has adequately determined cannot be used for payment or investment purposes. This is a narrower exclusion and requires a factual assessment.
• Certain closed-loop tokens that can only be used within a specific, limited ecosystem and cannot be transferred or exchanged outside that ecosystem.

Fix

1. Review the exclusion criteria carefully. Do not assume an asset is excluded without verifying it against the specific conditions in the directive.
2. Be cautious with borderline cases. If an asset is close to an exclusion boundary, the safer approach is to treat it as in scope unless you have a clear basis for exclusion.
3. Monitor regulatory updates. The European Commission and national tax authorities may issue guidance clarifying the treatment of specific asset types. Keep your classification up to date.

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Problem: Handling New and Emerging Asset Types

Cause

The crypto-asset landscape evolves rapidly. New asset types include, but are not limited to:

• Wrapped tokens (e.g., wrapped Bitcoin on Ethereum).
• Liquid staking tokens.
• Governance tokens.
• Non-fungible tokens (NFTs) with varying characteristics.
• Tokenized real-world assets.
• Synthetic assets.

These may not have been explicitly contemplated when the directive was drafted, and their classification can be uncertain.

Fix

1. Apply the definition from first principles. For each new asset type, assess it against the core DAC8 definition: Is it a digital representation of value or rights? Does it use DLT? Can it be transferred and stored electronically?
2. Assess NFTs carefully. DAC8 may cover certain NFTs, particularly those that function as investment vehicles or stores of value. NFTs that are purely representative of unique digital art or collectibles may or may not be in scope depending on their characteristics and how they are traded. This area is likely to see further regulatory clarification.
3. Consider the asset's function, not just its label. An asset labeled as a "utility token" may still be in scope if it is widely traded on secondary markets and used as a store of value or investment.
4. Seek guidance when uncertain. For genuinely novel asset types, consider seeking advice from legal counsel with expertise in EU crypto-asset regulation, or request clarification from the relevant tax authority.

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Problem: Assets That Change Classification Over Time

Cause

Some assets may evolve in nature. For example, a utility token that was initially used only within a closed ecosystem may later become tradeable on public exchanges, changing its classification under DAC8.

Fix

1. Review classifications periodically. Do not treat your initial classification as permanent. Reassess assets at least annually or when significant changes occur (such as listing on a major exchange, change in token functionality, or a protocol upgrade).
2. Update reports accordingly. If an asset moves from out of scope to in scope, begin reporting transactions involving that asset from the point the reclassification takes effect. Consult with legal counsel on whether retroactive reporting is required.
3. Document the change. Record when and why the classification changed.

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Building a Classification Register

Maintain a register or database of all assets on your platform, including:

• Asset name and ticker symbol.
• Technology type (DLT-based, other).
• Classification (Relevant Crypto-Asset / Excluded / Under Review).
• Basis for classification (reference to specific DAC8 provisions or exclusion criteria).
• Date of last review.
• Any relevant regulatory guidance relied upon.

This register serves as an audit trail and supports consistent, defensible reporting decisions.

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Disclaimer

This article provides general guidance on crypto-asset classification under DAC8. The precise scope of "Relevant Crypto-Assets" and applicable exclusions are defined in the directive text and may be further clarified by EU and national-level guidance over time. Always consult the official legislative text, relevant regulatory guidance, and professional advisors when making classification decisions.