{"id":22859,"date":"2025-12-06T15:24:34","date_gmt":"2025-12-06T14:24:34","guid":{"rendered":"https:\/\/coincharge.io\/eu-regulation-amlr-micar-dac8-explained\/"},"modified":"2025-12-06T15:24:36","modified_gmt":"2025-12-06T14:24:36","slug":"eu-regulation-amlr-micar-dac8-explained","status":"publish","type":"post","link":"https:\/\/coincharge.io\/en\/eu-regulation-amlr-micar-dac8-explained\/","title":{"rendered":"EU regulation: AMLR, MiCAR &amp; DAC8 explained"},"content":{"rendered":"<div class=\"wpb-content-wrapper\">[vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1762863705389{padding-top: 30px !important;padding-bottom: 30px !important;background-color: #6193C9 !important;}&#8221;]\n<h1 style=\"text-align: center;\"><strong><span style=\"color: #ffffff;\">EU regulation: AMLR, MiCAR &amp; DAC8 explained<\/span><\/strong><\/h1>\n<h1 style=\"text-align: center;\"><strong><span style=\"color: #ffffff;\">&#8211;  <\/span><\/strong><\/h1>\n<h1 style=\"text-align: center;\"><strong><span style=\"color: #ffffff;\">What Bitcoin payments mean in practice<\/span><\/strong><\/h1>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"434\" data-end=\"686\">In recent weeks, numerous <strong data-start=\"482\" data-end=\"540\">false reports about the EU anti-money laundering package (AMLR)<\/strong> have been making the rounds again.<br data-start=\"551\" data-end=\"554\">One read about an alleged &#8220;compulsory ID card for every Bitcoin transaction&#8221; or even the end of peer-to-peer payments in Europe.<\/p>\n<p data-start=\"688\" data-end=\"828\">But what is really behind it all?<br data-start=\"722\" data-end=\"725\">And what does all this mean in concrete terms for <strong data-start=\"764\" data-end=\"795\">Bitcoin payments in everyday life<\/strong> &#8211; i.e. for payers and merchants?<\/p>\n<p>So it&#8217;s time to set the record straight and explain the <strong data-start=\"636\" data-end=\"661\">wider context<\/strong> of <strong data-start=\"666\" data-end=\"675\">MiCAR<\/strong> and <strong data-start=\"680\" data-end=\"688\">DAC8<\/strong> and why <strong data-start=\"909\" data-end=\"925\">self-custody<\/strong> is more important than ever.[\/vc_column_text][\/vc_column][\/vc_row][vc_row css=&#8221;.vc_custom_1738351904557{border-top-width: 3px !important;border-right-width: 3px !important;border-bottom-width: 3px !important;border-left-width: 3px !important;padding-top: 10px !important;padding-bottom: 10px !important;border-left-style: solid !important;border-right-style: solid !important;border-top-style: solid !important;border-bottom-style: solid !important;border-color: #6193C9 !important;}&#8221;][vc_column][vc_column_text css=&#8221;&#8221;]\n<h2 style=\"text-align: center;\" data-start=\"820\" data-end=\"874\"><span style=\"color: #6193c9;\"><strong>MiCAR, AMLR &amp; DAC8 &#8211; The new EU crypto triangle<\/strong><\/span><\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"876\" data-end=\"931\">Three new EU legislative packages will interlock in future:<\/p>\n<div class=\"_tableContainer_1rjym_1\">\n<div class=\"group _tableWrapper_1rjym_13 flex w-fit flex-col-reverse\" tabindex=\"-1\">\n<table class=\"w-fit min-w-(--thread-content-width)\" data-start=\"933\" data-end=\"1528\">\n<thead data-start=\"933\" data-end=\"967\">\n<tr data-start=\"933\" data-end=\"967\">\n<th data-start=\"933\" data-end=\"945\" data-col-size=\"md\">Rules and regulations<\/th>\n<th data-start=\"945\" data-end=\"953\" data-col-size=\"md\">Focus<\/th>\n<th data-start=\"953\" data-end=\"967\" data-col-size=\"sm\">Affected parties<\/th>\n<\/tr>\n<\/thead>\n<tbody data-start=\"1006\" data-end=\"1528\">\n<tr data-start=\"1006\" data-end=\"1180\">\n<td data-start=\"1006\" data-end=\"1056\" data-col-size=\"md\"><strong data-start=\"1008\" data-end=\"1017\">MiCAR<\/strong> (Markets in Crypto Assets Regulation)<\/td>\n<td data-col-size=\"md\" data-start=\"1056\" data-end=\"1147\">Uniform EU rules for crypto service providers (license, consumer protection, stablecoins)<\/td>\n<td data-col-size=\"sm\" data-start=\"1147\" data-end=\"1180\">Exchanges, custodians, issuers<\/td>\n<\/tr>\n<tr data-start=\"1181\" data-end=\"1363\">\n<td data-start=\"1181\" data-end=\"1227\" data-col-size=\"md\"><strong data-start=\"1183\" data-end=\"1191\">AMLR<\/strong> (Anti-Money Laundering Regulation)<\/td>\n<td data-col-size=\"md\" data-start=\"1227\" data-end=\"1325\">Measures against money laundering &amp; terrorist financing (KYC, wallet check, privacy coin ban)<\/td>\n<td data-col-size=\"sm\" data-start=\"1325\" data-end=\"1363\">Banks, CASPs, financial service providers<\/td>\n<\/tr>\n<tr data-start=\"1364\" data-end=\"1528\">\n<td data-start=\"1364\" data-end=\"1419\" data-col-size=\"md\"><strong data-start=\"1366\" data-end=\"1374\">DAC8<\/strong> (Directive on Administrative Cooperation 8)<\/td>\n<td data-col-size=\"md\" data-start=\"1419\" data-end=\"1503\">Tax transparency and automatic exchange of information on crypto transactions<\/td>\n<td data-col-size=\"sm\" data-start=\"1503\" data-end=\"1528\">CASPs, tax authorities<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<p data-start=\"1659\" data-end=\"1898\"><strong data-start=\"1659\" data-end=\"1668\">MiCAR<\/strong> regulates who is considered a crypto service provider.<br data-start=\"1711\" data-end=\"1714\"><strong data-start=\"1714\" data-end=\"1722\">AMLR<\/strong> prescribes auditing obligations and customer identification for these service providers.<br data-start=\"1798\" data-end=\"1801\"> DAC8 finally ensures the automatic exchange of information between tax authorities.<\/p>\n<p data-start=\"1900\" data-end=\"2025\">\ud83d\udc49 Together, they form the EU&#8217;s attempt to monitor cryptocurrencies more closely and embed them in the traditional financial system.<\/p>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row css=&#8221;.vc_custom_1738351904557{border-top-width: 3px !important;border-right-width: 3px !important;border-bottom-width: 3px !important;border-left-width: 3px !important;padding-top: 10px !important;padding-bottom: 10px !important;border-left-style: solid !important;border-right-style: solid !important;border-top-style: solid !important;border-bottom-style: solid !important;border-color: #6193C9 !important;}&#8221;][vc_column][vc_column_text css=&#8221;&#8221;]\n<h2 style=\"text-align: center;\" data-start=\"2106\" data-end=\"2159\"><span style=\"color: #6193c9;\"><strong>No ID required for every Bitcoin transaction<\/strong><\/span><\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"2086\" data-end=\"2168\">The fact is:<br data-start=\"2095\" data-end=\"2098\"><strong data-start=\"2098\" data-end=\"2166\">There is no general ID requirement for every Bitcoin payment.<\/strong><\/p>\n<p data-start=\"2170\" data-end=\"2334\">The new rules <strong data-start=\"2194\" data-end=\"2238\">only<\/strong> apply <strong data-start=\"2194\" data-end=\"2238\">to regulated service providers (CASPs)<\/strong> &#8211; e.g. exchanges, custodians or payment providers that hold crypto on behalf of others.<\/p>\n<p data-start=\"2336\" data-end=\"2478\">However, anyone who <strong data-start=\"2354\" data-end=\"2388\">controls<\/strong> their <strong data-start=\"2354\" data-end=\"2388\">own keys<\/strong> (self-custody) is <strong data-start=\"2411\" data-end=\"2424\">not a CASP<\/strong> and is therefore <strong data-start=\"2441\" data-end=\"2475\">not subject to these regulations<\/strong>.<\/p>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row css=&#8221;.vc_custom_1738351904557{border-top-width: 3px !important;border-right-width: 3px !important;border-bottom-width: 3px !important;border-left-width: 3px !important;padding-top: 10px !important;padding-bottom: 10px !important;border-left-style: solid !important;border-right-style: solid !important;border-top-style: solid !important;border-bottom-style: solid !important;border-color: #6193C9 !important;}&#8221;][vc_column][vc_column_text css=&#8221;&#8221;]\n<h2 style=\"text-align: center;\" data-start=\"2690\" data-end=\"2758\"><span style=\"color: #6193c9;\"><strong>Due diligence obligations of service providers for payments with self-custody wallets<\/strong><\/span><\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"2760\" data-end=\"2936\">The AMLR requires <strong data-start=\"2590\" data-end=\"2615\">service providers (CASPs<\/strong>) to perform certain checks when sending or receiving money <strong data-start=\"2666\" data-end=\"2712\">to or from a self-managed wallet<\/strong>.<\/p>\n[\/vc_column_text][vc_column_text css=&#8221;.vc_custom_1762860443730{margin-left: 50px !important;}&#8221;]\n<ul>\n<li data-start=\"2741\" data-end=\"2851\"><strong data-start=\"2741\" data-end=\"2759\">Under \u20ac1,000:<\/strong><br data-start=\"2759\" data-end=\"2762\">A <strong data-start=\"2769\" data-end=\"2795\">risk-based analysis<\/strong> is sufficient &#8211; e.g. automated blockchain analysis.<\/li>\n<li data-start=\"2854\" data-end=\"3035\"><strong data-start=\"2854\" data-end=\"2871\">Over \u20ac1,000:<\/strong><br data-start=\"2871\" data-end=\"2874\">The service provider must check whether the wallet actually belongs to its customer, for example by means of the so-called <strong data-start=\"2986\" data-end=\"3002\">Satoshi test<\/strong> (a small test transaction).<\/li>\n<\/ul>\n[\/vc_column_text][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"3147\" data-end=\"3332\">This verification obligation applies <strong data-start=\"3065\" data-end=\"3101\">exclusively to the service provider<\/strong>, not the individual payer or merchant.<br data-start=\"3145\" data-end=\"3148\">If <strong data-start=\"3153\" data-end=\"3191\">both parties use self-custody<\/strong>, <strong data-start=\"3200\" data-end=\"3217\">no verification<\/strong> takes place &#8211; because there is <strong data-start=\"3241\" data-end=\"3271\">no regulated third party<\/strong> that would be obliged to do so.<\/p>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row css=&#8221;.vc_custom_1738351904557{border-top-width: 3px !important;border-right-width: 3px !important;border-bottom-width: 3px !important;border-left-width: 3px !important;padding-top: 10px !important;padding-bottom: 10px !important;border-left-style: solid !important;border-right-style: solid !important;border-top-style: solid !important;border-bottom-style: solid !important;border-color: #6193C9 !important;}&#8221;][vc_column][vc_column_text css=&#8221;&#8221;]\n<h2 style=\"text-align: center;\" data-start=\"3509\" data-end=\"3563\"><span style=\"color: #6193c9;\"><strong>Practical example: The pizzeria and its Bitcoin payments<\/strong><\/span><\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"3565\" data-end=\"3854\">Imagine the <strong data-start=\"3400\" data-end=\"3424\">pizzeria around the corner<\/strong> accepts Bitcoin.<br data-start=\"3444\" data-end=\"3447\">How the AMLR works depends on <strong data-start=\"3484\" data-end=\"3511\">who uses which wallet<\/strong>:<\/p>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row css=&#8221;.vc_custom_1738351904557{border-top-width: 3px !important;border-right-width: 3px !important;border-bottom-width: 3px !important;border-left-width: 3px !important;padding-top: 10px !important;padding-bottom: 10px !important;border-left-style: solid !important;border-right-style: solid !important;border-top-style: solid !important;border-bottom-style: solid !important;border-color: #6193C9 !important;}&#8221;][vc_column][vc_column_text css=&#8221;&#8221;]\n<h3 style=\"text-align: left;\"><span style=\"color: #6193c9;\">1. both sides use self-custody<\/span><\/h3>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"3565\" data-end=\"3854\">The customer pays with their own wallet (e.g. Phoenix, BitBox).<br data-start=\"3641\" data-end=\"3644\">The payments end up directly in the pizzeria&#8217;s <strong data-start=\"3753\" data-end=\"3771\">own wallet<\/strong>.<\/p>\n[\/vc_column_text][vc_column_text css=&#8221;.vc_custom_1762860791064{margin-left: 50px !important;}&#8221;]\n<ul>\n<li data-start=\"3805\" data-end=\"3860\">\n<p data-start=\"3807\" data-end=\"3860\">No exchange, no payment service provider in between.<\/p>\n<\/li>\n<li data-start=\"3861\" data-end=\"3914\">\n<p data-start=\"3863\" data-end=\"3914\"><strong data-start=\"3863\" data-end=\"3887\">Peer-to-peer payment<\/strong> in the original sense.<\/p>\n<\/li>\n<li data-start=\"3915\" data-end=\"3982\">\n<p data-start=\"3917\" data-end=\"3982\"><strong data-start=\"3917\" data-end=\"3982\">No AMLR check, no data collection, no reporting obligation.<\/strong><\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_column_text css=&#8221;&#8221;]This is how Bitcoin works as it was intended &#8211; decentralized, private and without middlemen.[\/vc_column_text][\/vc_column][\/vc_row][vc_row css=&#8221;.vc_custom_1738351904557{border-top-width: 3px !important;border-right-width: 3px !important;border-bottom-width: 3px !important;border-left-width: 3px !important;padding-top: 10px !important;padding-bottom: 10px !important;border-left-style: solid !important;border-right-style: solid !important;border-top-style: solid !important;border-bottom-style: solid !important;border-color: #6193C9 !important;}&#8221;][vc_column][vc_column_text css=&#8221;&#8221;]\n<h3 style=\"text-align: left;\"><span style=\"color: #6193c9;\">2. customer pays from a custody wallet (e.g. stock exchange account)<\/span><\/h3>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"3565\" data-end=\"3854\">The customer pays from their exchange account. A regulated service provider is involved here &#8211; the stock exchange.<br data-start=\"4218\" data-end=\"4221\">According to the AMLR, it must check where the money is sent. <\/p>\n[\/vc_column_text][vc_column_text css=&#8221;.vc_custom_1762863596364{margin-left: 50px !important;}&#8221;]\n<ul>\n<li data-start=\"4298\" data-end=\"4342\">Under \u20ac1,000: automatic risk analysis.<\/li>\n<li data-start=\"4345\" data-end=\"4393\">Over \u20ac1,000: additional verification possible.<\/li>\n<li data-start=\"4396\" data-end=\"4473\">The pizzeria is <strong data-start=\"4413\" data-end=\"4432\">not affected<\/strong> &#8211; the obligation lies with the <strong data-start=\"4461\" data-end=\"4470\">payer&#8217;s exchange<\/strong>.<\/li>\n<\/ul>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row css=&#8221;.vc_custom_1738351904557{border-top-width: 3px !important;border-right-width: 3px !important;border-bottom-width: 3px !important;border-left-width: 3px !important;padding-top: 10px !important;padding-bottom: 10px !important;border-left-style: solid !important;border-right-style: solid !important;border-top-style: solid !important;border-bottom-style: solid !important;border-color: #6193C9 !important;}&#8221;][vc_column][vc_column_text css=&#8221;&#8221;]\n<h3 style=\"text-align: left;\"><span style=\"color: #6193c9;\">3. pizzeria uses a custody payment provider<\/span><\/h3>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"3565\" data-end=\"3854\">In this case, the pizzeria uses <strong data-start=\"4603\" data-end=\"4638\">an external payment provider<\/strong> for its Bitcoin payments, which <strong data-start=\"4664\" data-end=\"4702\">processes<\/strong> the transactions <strong data-start=\"4664\" data-end=\"4702\">technically and financially<\/strong> &#8211; such as <strong data-start=\"4710\" data-end=\"4720\">BitPay<\/strong> or <strong data-start=\"4726\" data-end=\"4738\">OpenNode<\/strong>.<\/p>\n[\/vc_column_text][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"4743\" data-end=\"4791\"><strong data-start=\"4745\" data-end=\"4791\">What does a custody payment provider do?<\/strong><\/p>\n<p data-start=\"4793\" data-end=\"4890\">Such a provider stores the Bitcoin balance <strong data-start=\"4844\" data-end=\"4871\">on behalf of the trader<\/strong>.<br data-start=\"4872\" data-end=\"4875\">This means:<\/p>\n[\/vc_column_text][vc_column_text css=&#8221;.vc_custom_1762861393531{margin-left: 50px !important;}&#8221;]\n<ul>\n<li data-start=\"4891\" data-end=\"5057\">\n<p data-start=\"4893\" data-end=\"5057\">Incoming Bitcoin payments <strong data-start=\"4934\" data-end=\"4977\">do not<\/strong> end up <strong data-start=\"4934\" data-end=\"4977\">directly in the merchant&#8217;s wallet<\/strong>, but first in a wallet that is <strong data-start=\"5020\" data-end=\"5049\">controlled by the provider<\/strong>.<\/p>\n<\/li>\n<li data-start=\"5058\" data-end=\"5177\">\n<p data-start=\"5060\" data-end=\"5177\">The provider <strong data-start=\"5073\" data-end=\"5085\">stores<\/strong> these Bitcoin<em data-start=\"5101\" data-end=\"5110\">(custody<\/em>) and can <strong data-start=\"5140\" data-end=\"5174\">automatically exchange<\/strong> them <strong data-start=\"5140\" data-end=\"5174\">for euros<\/strong> if required.<\/p>\n<\/li>\n<li data-start=\"5178\" data-end=\"5334\">\n<p data-start=\"5180\" data-end=\"5334\">He then credits the euro amount to the <strong data-start=\"5229\" data-end=\"5255\">merchant&#8217;s bank account<\/strong> or holds the Bitcoin balance in trust on behalf of the merchant.<\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_column_text css=&#8221;&#8221;]<strong>What does this mean legally?<\/strong>[\/vc_column_text][vc_column_text css=&#8221;.vc_custom_1762861455178{margin-left: 50px !important;}&#8221;]\n<ul>\n<li data-start=\"5372\" data-end=\"5508\">\n<p data-start=\"5374\" data-end=\"5508\">The payment provider is considered a <strong data-start=\"5404\" data-end=\"5444\">Crypto Asset Service Provider (CASP) <\/strong>and is fully subject to <strong data-start=\"5480\" data-end=\"5488\">AMLR<\/strong> and <strong data-start=\"5497\" data-end=\"5505\">DAC8<\/strong>.<\/p>\n<\/li>\n<li data-start=\"5509\" data-end=\"5629\">\n<p data-start=\"5511\" data-end=\"5629\">It must <strong data-start=\"5551\" data-end=\"5575\">identify <\/strong>its customers (i.e. the merchant) <strong data-start=\"5551\" data-end=\"5575\">(KYC <\/strong>) and <strong data-start=\"5598\" data-end=\"5626\">check and document<\/strong> transactions.<\/p>\n<\/li>\n<li data-start=\"5630\" data-end=\"5708\">\n<p data-start=\"5632\" data-end=\"5708\">Wallet verification is mandatory for amounts over <strong data-start=\"5650\" data-end=\"5661\">\u20ac1,000<\/strong>.<\/p>\n<\/li>\n<li data-start=\"5709\" data-end=\"5813\">\n<p data-start=\"5711\" data-end=\"5813\">The provider may also be obliged to <strong data-start=\"5761\" data-end=\"5810\">report transaction data to tax authorities.<\/strong><\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_column_text css=&#8221;&#8221;]<strong>What does this mean for the retailer?<\/strong>[\/vc_column_text][vc_column_text css=&#8221;.vc_custom_1762861512658{margin-left: 50px !important;}&#8221;]\n<ul>\n<li data-start=\"5850\" data-end=\"5909\">The pizzeria itself <strong data-start=\"5870\" data-end=\"5894\">does not have to<\/strong> carry out <strong data-start=\"5870\" data-end=\"5894\">any checks<\/strong>.<\/li>\n<li data-start=\"5912\" data-end=\"6045\">However, it <strong data-start=\"5936\" data-end=\"5973\">no longer works in a peer-to-peer model<\/strong>, but within a <strong data-start=\"6003\" data-end=\"6042\">regulated and monitored system<\/strong>.<\/li>\n<li data-start=\"6048\" data-end=\"6169\">The merchant has <strong data-start=\"6064\" data-end=\"6120\">no direct control over the Bitcoin received<\/strong> as long as it is held by the payment provider.<\/li>\n<\/ul>\n[\/vc_column_text][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"6171\" data-end=\"6527\">Custody payment providers such as <strong data-start=\"6216\" data-end=\"6226\">BitPay<\/strong> or <strong data-start=\"6232\" data-end=\"6244\">OpenNode<\/strong> make Bitcoin payments convenient, but lead them into a <strong data-start=\"6303\" data-end=\"6342\">centralized, monitored system<\/strong> with KYC and reporting obligations.<br data-start=\"6371\" data-end=\"6374\">Those who want to maintain independence and privacy should therefore rely on <strong data-start=\"6442\" data-end=\"6467\">self-custody solutions<\/strong> such as <strong data-start=\"6472\" data-end=\"6489\">BTCPay Server<\/strong> or <strong data-start=\"6495\" data-end=\"6519\">Coinsnap <\/strong>.<\/p>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row css=&#8221;.vc_custom_1738351904557{border-top-width: 3px !important;border-right-width: 3px !important;border-bottom-width: 3px !important;border-left-width: 3px !important;padding-top: 10px !important;padding-bottom: 10px !important;border-left-style: solid !important;border-right-style: solid !important;border-top-style: solid !important;border-bottom-style: solid !important;border-color: #6193C9 !important;}&#8221;][vc_column][vc_column_text css=&#8221;&#8221;]\n<h3 style=\"text-align: left;\"><span style=\"color: #6193c9;\">4. both sides use custody providers<\/span><\/h3>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"6586\" data-end=\"6749\">If the customer pays from an exchange wallet and the pizzeria receives via a custody payment provider, <strong data-start=\"6703\" data-end=\"6736\">two regulated service providers<\/strong> are involved.<\/p>\n<p data-start=\"6751\" data-end=\"6939\">In this case, <strong data-start=\"6775\" data-end=\"6793\">both providers<\/strong> must fulfill their verification obligations and inform each other about the sender and recipient &#8211; this is done via the so-called <strong data-start=\"6921\" data-end=\"6936\">travel rule<\/strong>.<\/p>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row css=&#8221;.vc_custom_1738351904557{border-top-width: 3px !important;border-right-width: 3px !important;border-bottom-width: 3px !important;border-left-width: 3px !important;padding-top: 10px !important;padding-bottom: 10px !important;border-left-style: solid !important;border-right-style: solid !important;border-top-style: solid !important;border-bottom-style: solid !important;border-color: #6193C9 !important;}&#8221;][vc_column][vc_column_text css=&#8221;&#8221;]\n<h3 style=\"text-align: left;\"><span style=\"color: #6193c9;\">5. merchant with self-custody payment provider<\/span><\/h3>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"7051\" data-end=\"7235\">Many merchants today use solutions such as <strong data-start=\"7091\" data-end=\"7108\">BTCPay Server<\/strong> or <strong data-start=\"7114\" data-end=\"7155\">Coinsnap in the self-custody version<\/strong>, where the Bitcoin received flows <strong data-start=\"7193\" data-end=\"7224\">directly into their own wallet<\/strong>.<\/p>\n<p data-start=\"7237\" data-end=\"7254\">\u27a1 A <strong data-start=\"7239\" data-end=\"7252\">dvantages:<\/strong><\/p>\n[\/vc_column_text][vc_column_text css=&#8221;.vc_custom_1762861786218{margin-left: 50px !important;}&#8221;]\n<ul>\n<li data-start=\"7255\" data-end=\"7337\">\n<p data-start=\"7257\" data-end=\"7337\">No third-party custody \u2192 no CASP \u2192 <strong data-start=\"7301\" data-end=\"7335\">no AMLR or DAC8 obligation.<\/strong><\/p>\n<\/li>\n<li data-start=\"7338\" data-end=\"7382\">\n<p data-start=\"7340\" data-end=\"7382\">Full control over your own funds.<\/p>\n<\/li>\n<li data-start=\"7383\" data-end=\"7424\">\n<p data-start=\"7385\" data-end=\"7424\">Data protection-friendly and independent.<\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row css=&#8221;.vc_custom_1738351904557{border-top-width: 3px !important;border-right-width: 3px !important;border-bottom-width: 3px !important;border-left-width: 3px !important;padding-top: 10px !important;padding-bottom: 10px !important;border-left-style: solid !important;border-right-style: solid !important;border-top-style: solid !important;border-bottom-style: solid !important;border-color: #6193C9 !important;}&#8221;][vc_column][vc_column_text css=&#8221;&#8221;]\n<h2 style=\"text-align: center;\" data-start=\"4265\" data-end=\"4318\"><strong><span style=\"color: #6193c9;\">DAC8 &#8211; The new tax reporting obligation for crypto<\/span><\/strong><\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"4320\" data-end=\"4464\">With DAC8, the EU obliges <strong data-start=\"4349\" data-end=\"4377\">all crypto service providers<\/strong> to <strong data-start=\"4409\" data-end=\"4446\">automatically<\/strong> transmit tax-relevant information <strong data-start=\"4409\" data-end=\"4446\">to the tax authorities<\/strong>.<\/p>\n<p data-start=\"4466\" data-end=\"4478\">This includes:<\/p>\n[\/vc_column_text][vc_column_text css=&#8221;.vc_custom_1762862106786{margin-left: 50px !important;}&#8221;]\n<ul data-start=\"4479\" data-end=\"4637\">\n<li data-start=\"4479\" data-end=\"4525\">\n<p data-start=\"4481\" data-end=\"4525\">Identity data (name, address, tax ID)<\/p>\n<\/li>\n<li data-start=\"4526\" data-end=\"4578\">\n<p data-start=\"4528\" data-end=\"4578\">Type, number and value of crypto assets traded<\/p>\n<\/li>\n<li data-start=\"4579\" data-end=\"4608\">\n<p data-start=\"4581\" data-end=\"4608\">Timing of transactions<\/p>\n<\/li>\n<li data-start=\"4609\" data-end=\"4637\">\n<p data-start=\"4611\" data-end=\"4637\">Account balances at the end of the year<\/p>\n<\/li>\n<\/ul>\n[\/vc_column_text][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"4639\" data-end=\"4819\">This data is <strong data-start=\"4658\" data-end=\"4706\">exchanged between EU member states<\/strong> so that national tax authorities have a complete overview of citizens&#8217; crypto activities.<\/p>\n<p data-start=\"4821\" data-end=\"4950\">The rationale: to <strong data-start=\"4837\" data-end=\"4872\">prevent tax evasion.<\/strong><br data-start=\"4872\" data-end=\"4875\">The reality: <strong data-start=\"4889\" data-end=\"4950\">the end of tax privacy for crypto users.<\/strong><\/p>\n<p data-start=\"7626\" data-end=\"7760\">The <strong data-start=\"7630\" data-end=\"7638\">DAC8<\/strong> <strong data-start=\"7652\" data-end=\"7692\">only<\/strong> requires <strong data-start=\"7652\" data-end=\"7692\">regulated service providers (CASPs)<\/strong> to report transaction and customer data to the tax authorities.<\/p>\n<p data-start=\"7762\" data-end=\"7962\">Self-custody users are <strong data-start=\"7793\" data-end=\"7812\">not<\/strong> affected by this.<br data-start=\"7813\" data-end=\"7816\">Those who hold their own keys remain <strong data-start=\"7852\" data-end=\"7887\">outside the DAC8 reporting obligation<\/strong> &#8211; but must of course <strong data-start=\"7921\" data-end=\"7959\">pay tax on their income correctly<\/strong>.<\/p>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row css=&#8221;.vc_custom_1738351904557{border-top-width: 3px !important;border-right-width: 3px !important;border-bottom-width: 3px !important;border-left-width: 3px !important;padding-top: 10px !important;padding-bottom: 10px !important;border-left-style: solid !important;border-right-style: solid !important;border-top-style: solid !important;border-bottom-style: solid !important;border-color: #6193C9 !important;}&#8221;][vc_column][vc_column_text css=&#8221;&#8221;]\n<h2 style=\"text-align: center;\" data-start=\"4957\" data-end=\"5004\"><span style=\"color: #6193c9;\">DAC8 in practice: The pizzeria question<\/span><\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"5006\" data-end=\"5056\">A reader recently asked a very good question:<\/p>\n<blockquote data-start=\"5057\" data-end=\"5187\">\n<p data-start=\"5059\" data-end=\"5187\">&#8220;Does DAC8 also have an impact on the pizzeria around the corner that sells pizzas for sats? Or on small donations in Bitcoin?&#8221;<\/p>\n<\/blockquote>\n<p data-start=\"8112\" data-end=\"8231\"><strong data-start=\"8112\" data-end=\"8121\">No.<\/strong><br data-start=\"8121\" data-end=\"8124\">As long as the pizzeria receives Bitcoin <strong data-start=\"8153\" data-end=\"8185\">directly into its own wallet<\/strong>, it <strong data-start=\"8208\" data-end=\"8228\">does not fall under DAC8<\/strong>.<\/p>\n<p data-start=\"8233\" data-end=\"8368\">Only if a <strong data-start=\"8246\" data-end=\"8279\">custodian payment provider<\/strong> is involved does it have to report the transaction data &#8211; not the merchant itself.<\/p>\n<hr data-start=\"8370\" data-end=\"8373\">\n<h2 data-start=\"8375\" data-end=\"8390\">Overview<\/h2>\n<div class=\"_tableContainer_1rjym_1\">\n<div class=\"group _tableWrapper_1rjym_13 flex w-fit flex-col-reverse\" tabindex=\"-1\">\n<table class=\"w-fit min-w-(--thread-content-width)\" data-start=\"8392\" data-end=\"8979\">\n<thead data-start=\"8392\" data-end=\"8473\">\n<tr data-start=\"8392\" data-end=\"8473\">\n<th data-start=\"8392\" data-end=\"8403\" data-col-size=\"md\">Scenario<\/th>\n<th data-start=\"8403\" data-end=\"8416\" data-col-size=\"sm\">Parties involved<\/th>\n<th data-start=\"8416\" data-end=\"8440\" data-col-size=\"sm\">Who is obliged?<\/th>\n<th data-start=\"8440\" data-end=\"8456\" data-col-size=\"sm\">AMLR check?<\/th>\n<th data-start=\"8456\" data-end=\"8473\" data-col-size=\"sm\">DAC8 notification?<\/th>\n<\/tr>\n<\/thead>\n<tbody data-start=\"8559\" data-end=\"8979\">\n<tr data-start=\"8559\" data-end=\"8681\">\n<td data-start=\"8559\" data-end=\"8638\" data-col-size=\"md\">Customer &amp; merchant with self-custody (e.g. BTCPay Server, Coinsnap <\/td>\n<td data-col-size=\"sm\" data-start=\"8638\" data-end=\"8652\">no CASPs<\/td>\n<td data-col-size=\"sm\" data-start=\"8652\" data-end=\"8662\">nobody<\/td>\n<td data-col-size=\"sm\" data-start=\"8662\" data-end=\"8671\">\u274c No<\/td>\n<td data-col-size=\"sm\" data-start=\"8671\" data-end=\"8681\">\u274c No<\/td>\n<\/tr>\n<tr data-start=\"8682\" data-end=\"8785\">\n<td data-start=\"8682\" data-end=\"8725\" data-col-size=\"md\">Customer (Custody) \u2192 Retailer (Self-Custody)<\/td>\n<td data-col-size=\"sm\" data-start=\"8725\" data-end=\"8734\">1 CASP<\/td>\n<td data-col-size=\"sm\" data-start=\"8734\" data-end=\"8756\">Provider of the customer<\/td>\n<td data-col-size=\"sm\" data-start=\"8756\" data-end=\"8763\">\u2705 Yes<\/td>\n<td data-col-size=\"sm\" data-start=\"8763\" data-end=\"8785\">\u2705 Yes (customer side)<\/td>\n<\/tr>\n<tr data-start=\"8786\" data-end=\"8896\">\n<td data-start=\"8786\" data-end=\"8838\" data-col-size=\"md\">Customer (self-custody) \u2192 Merchant (custody provider)<\/td>\n<td data-col-size=\"sm\" data-start=\"8838\" data-end=\"8847\">1 CASP<\/td>\n<td data-col-size=\"sm\" data-start=\"8847\" data-end=\"8866\">Payment provider<\/td>\n<td data-col-size=\"sm\" data-start=\"8866\" data-end=\"8873\">\u2705 Yes<\/td>\n<td data-col-size=\"sm\" data-start=\"8873\" data-end=\"8896\">\u2705 Yes (merchant side)<\/td>\n<\/tr>\n<tr data-start=\"8897\" data-end=\"8979\">\n<td data-start=\"8897\" data-end=\"8913\" data-col-size=\"md\">Both Custody<\/td>\n<td data-col-size=\"sm\" data-start=\"8913\" data-end=\"8923\">2 CASPs<\/td>\n<td data-col-size=\"sm\" data-start=\"8923\" data-end=\"8940\">Both providers<\/td>\n<td data-col-size=\"sm\" data-start=\"8940\" data-end=\"8959\">\u2705 Yes, on both sides<\/td>\n<td data-col-size=\"sm\" data-start=\"8959\" data-end=\"8979\">\u2705 Yes, on both sides<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row css=&#8221;.vc_custom_1738351904557{border-top-width: 3px !important;border-right-width: 3px !important;border-bottom-width: 3px !important;border-left-width: 3px !important;padding-top: 10px !important;padding-bottom: 10px !important;border-left-style: solid !important;border-right-style: solid !important;border-top-style: solid !important;border-bottom-style: solid !important;border-color: #6193C9 !important;}&#8221;][vc_column][vc_column_text css=&#8221;&#8221;]\n<h2 style=\"text-align: center;\" data-start=\"6213\" data-end=\"6261\"><span style=\"color: #6193c9;\"><strong>Recommendation: Rely on self-custody and peer-to-peer payments<\/strong><\/span><\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"9055\" data-end=\"9216\">Anyone who <strong data-start=\"9059\" data-end=\"9099\">uses Bitcoin as it was intended<\/strong> uses it <strong data-start=\"9112\" data-end=\"9128\">peer-to-peer<\/strong> &#8211; directly from person to person, without middlemen, without authorizations, without censorship.<\/p>\n<p data-start=\"9218\" data-end=\"9321\"><strong data-start=\"9218\" data-end=\"9243\">Self-custody solutions<\/strong> such as <strong data-start=\"9248\" data-end=\"9265\">BTCPay Server<\/strong> or <strong data-start=\"9271\" data-end=\"9297\">Coinsnap <\/strong>allow exactly that:<\/p>\n[\/vc_column_text][vc_column_text css=&#8221;.vc_custom_1762862038551{margin-left: 50px !important;}&#8221;]\n<ul>\n<li data-start=\"9324\" data-end=\"9373\">complete control over its own funds,<\/li>\n<li data-start=\"9376\" data-end=\"9414\">no disclosure of personal data,<\/li>\n<li data-start=\"9417\" data-end=\"9443\">Protection of privacy,<\/li>\n<li data-start=\"9446\" data-end=\"9510\">Independence from banks, stock exchanges and state supervision<\/li>\n<\/ul>\n[\/vc_column_text][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"1158\" data-end=\"1173\"><strong data-start=\"1161\" data-end=\"1171\">Conclusion:<\/strong><\/p>\n<blockquote data-start=\"1174\" data-end=\"1266\">\n<p data-start=\"1176\" data-end=\"1266\">Those who hold their own keys remain free &#8211; legally, technically and financially.<\/p>\n<\/blockquote>\n<p data-start=\"1268\" data-end=\"1481\">Bitcoin only works as a <strong data-start=\"1302\" data-end=\"1341\">peer-to-peer electronic cash system<\/strong> if payers and merchants <strong data-start=\"1374\" data-end=\"1405\">control<\/strong> their <strong data-start=\"1374\" data-end=\"1405\">own wallet<\/strong>.<br data-start=\"1406\" data-end=\"1409\">This is the only way for Bitcoin to remain <strong data-start=\"1431\" data-end=\"1478\">sustainable, censorship-resistant and sovereign<\/strong>.<\/p>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row css=&#8221;.vc_custom_1738351904557{border-top-width: 3px !important;border-right-width: 3px !important;border-bottom-width: 3px !important;border-left-width: 3px !important;padding-top: 10px !important;padding-bottom: 10px !important;border-left-style: solid !important;border-right-style: solid !important;border-top-style: solid !important;border-bottom-style: solid !important;border-color: #6193C9 !important;}&#8221;][vc_column][vc_column_text css=&#8221;&#8221;]\n<h2 style=\"text-align: center;\" data-start=\"6816\" data-end=\"6884\"><span style=\"color: #6193c9;\"><strong>Positive trend: lightning wallets rely on self-custody<\/strong><\/span><\/h2>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_column_text css=&#8221;&#8221;]\n<p data-start=\"1553\" data-end=\"1752\">A positive trend is already emerging:<br data-start=\"1601\" data-end=\"1604\">More and more <strong data-start=\"1615\" data-end=\"1649\">Bitcoin and lightning wallets<\/strong> are switching to <strong data-start=\"1662\" data-end=\"1678\">self-custody<\/strong> &#8211; and thus consistently following the original Bitcoin idea.<\/p>\n<p data-start=\"1754\" data-end=\"1941\">For example, the <strong data-start=\"1770\" data-end=\"1791\">Wallet of Satoshi<\/strong> recently announced that it would restrict its services in regulated markets and encourage users to manage their <strong data-start=\"1904\" data-end=\"1925\">own keys<\/strong>.<\/p>\n<p data-start=\"1943\" data-end=\"2134\">Other wallets such as <strong data-start=\"1962\" data-end=\"1973\">Phoenix<\/strong>, <strong data-start=\"1975\" data-end=\"1983\">Zeus<\/strong> or <strong data-start=\"1989\" data-end=\"2003\">MistyBreez <\/strong>are already completely <strong data-start=\"2039\" data-end=\"2056\">non-custodial<\/strong>, so that users retain full control over their funds at all times.<\/p>\n<p data-start=\"2136\" data-end=\"2403\">This development is a direct consequence of the new legal requirements:<br data-start=\"2209\" data-end=\"2212\">The more regulations focus on monitoring, mandatory reporting and control, the more awareness of <strong data-start=\"2329\" data-end=\"2355\">genuine self-custody<\/strong> grows &#8211; among <strong data-start=\"2364\" data-end=\"2400\">payers as well as merchants<\/strong>.<\/p>\n<p data-start=\"2405\" data-end=\"2744\">\u26a1 <strong data-start=\"2407\" data-end=\"2431\">Self-custody wallets<\/strong> are therefore not only a technical advance, but also an <strong data-start=\"2502\" data-end=\"2540\">answer to excessive regulation<\/strong>.<br data-start=\"2541\" data-end=\"2544\">They strengthen <strong data-start=\"2560\" data-end=\"2576\">privacy<\/strong>, promote <strong data-start=\"2586\" data-end=\"2614\">financial sovereignty <\/strong>and make Bitcoin payments what they should be again:<br data-start=\"2681\" data-end=\"2684\"><strong data-start=\"2684\" data-end=\"2744\">a free, decentralized and borderless means of payment.<\/strong><\/p>\n[\/vc_column_text][\/vc_column][\/vc_row]\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_column_text css=&#8221;.vc_custom_1762863705389{padding-top: 30px !important;padding-bottom: 30px !important;background-color: #6193C9 !important;}&#8221;] EU regulation: AMLR, MiCAR &amp; DAC8 explained &#8211; What Bitcoin payments mean [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":22748,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[55,111,37],"tags":[],"class_list":["post-22859","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-en","category-payment-processing","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/posts\/22859","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/comments?post=22859"}],"version-history":[{"count":2,"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/posts\/22859\/revisions"}],"predecessor-version":[{"id":22861,"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/posts\/22859\/revisions\/22861"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/media\/22748"}],"wp:attachment":[{"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/media?parent=22859"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/categories?post=22859"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coincharge.io\/en\/wp-json\/wp\/v2\/tags?post=22859"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}