Don't want to trade it yourself?
Our desk runs DEX portfolios on profit share.
Bulgaria’s parliament has approved final changes requiring crypto service providers to report detailed customer and transaction data to the country’s tax authority, bringing national rules in line with European Union information-sharing requirements.
The Bulgarian National Assembly approved the amendments to the Tax and Social Security Procedure Code on Sept. 9, with 149 lawmakers voting in favor, none against and 10 abstaining in the 240-seat chamber.
The legislation, introduced by the Cabinet, passed its second and final reading and transposes two European directives into Bulgarian law. The measures allow tax authorities in EU member states and participating jurisdictions to exchange information on people conducting crypto transactions.
Bulgaria crypto rules require firms to report customer data
Under the amendments, companies providing crypto asset services will be required to register and submit information to Bulgaria’s National Revenue Agency.
For each reportable user, providers must collect identifying information including the person’s name, address, date and place of birth, tax identification number and jurisdiction of tax residence.
The reporting obligation extends beyond customer identification. Crypto companies will need to disclose information covering each type of digital asset for which they have processed transactions, transfers or exchanges on behalf of users.
Transaction records must include the total gross amounts involved, the number of units traded and the number of purchases or sales made against fiat currencies. Crypto-to-crypto transactions are covered by the reporting requirements as well.
The changes form part of the EU’s implementation of the Directive on Administrative Cooperation, known as DAC8, which expanded tax information reporting to crypto assets. EU member states were required to transpose the framework into national law by Dec. 31, 2025, with the rules applying from Jan. 1, 2026.
Bulgaria’s final parliamentary approval therefore comes more than eight months after the deadline for member states to complete the required national legislation.
DAC8 requires crypto asset service providers to collect customer identities, tax identification numbers and transaction records that can later be exchanged between national tax authorities.
As crypto.news previously reported, the EU’s DAC8 rules cover crypto-to-fiat transactions, crypto-to-crypto exchanges and transfers involving external addresses. Providers began collecting reportable information from Jan. 1, with the first full-year reports due in 2027.
Withdrawals from reporting providers to external addresses can fall within the framework, meaning transactions involving self-custody wallets may appear in information submitted by crypto companies. The rules do not require providers to continuously report transactions conducted entirely within self-custody.
EU tax authorities prepare for cross-border data exchanges
Information collected under the reporting system is intended to move between tax authorities when customers reside in different participating jurisdictions.
The European Commission has said the framework was introduced to address tax evasion and avoidance involving crypto assets, where the cross-border nature of transactions can make it harder for national authorities to identify taxable activity.
Providers collect information from customers and submit it to the relevant national authority, allowing the data to be exchanged with another jurisdiction when the user is tax resident elsewhere.
A recent analysis of France showed how the system is expected to work once the first reporting cycle is completed. Reporting providers are collecting transaction information throughout 2026, while EU authorities are expected to exchange data covering that year by Sept. 30, 2027.
Customer information can include names, addresses, dates of birth, tax identification numbers and tax residences. Transaction reporting covers aggregated values and transaction counts for exchanges, transfers and certain payments.
Existing individual customers generally have until Jan. 1, 2027, to provide valid tax-residency self-certification information under the European framework.
Customers who fail to supply required information can face restrictions after providers issue two reminders and allow a 60-day period. National authorities retain responsibility for implementing enforcement procedures and penalties under their domestic systems.
CARF expands crypto tax information sharing outside the EU
The European system operates alongside the Organisation for Economic Co-operation and Development’s Crypto-Asset Reporting Framework, or CARF, which is designed to facilitate similar exchanges between participating jurisdictions outside the EU.
Data collection began in 48 jurisdictions at the start of 2026, with most early participants expected to begin exchanging information in 2027. Other jurisdictions are scheduled to join during subsequent reporting cycles.
The international reporting framework primarily relies on crypto intermediaries such as centralized exchanges and brokers that maintain customer records and can connect transactions to verified account holders.
Chainalysis estimated in August that potentially taxable on-chain crypto activity exceeded $457 billion globally in 2025. Transactions falling within the practical reporting reach of CARF accounted for 14% of the activity identified in its analysis.
The remaining 86% included activity involving decentralized exchanges, peer-to-peer transfers, on-chain income and crypto payments that can fall outside direct reporting by centralized service providers.
Public blockchain records can show transfers between addresses, but they do not automatically establish the taxpayer’s identity, the purpose of a transaction or the applicable cost basis. Tax authorities may therefore still require account records, wallet information and blockchain analysis when reviewing activity outside reporting providers.
Crypto tax reporting is expanding across jurisdictions
Several countries have been changing their domestic rules as cross-border crypto reporting takes effect.
The United Kingdom began implementing CARF in January, with its tax authority expected to start receiving customer information collected by crypto service providers in 2027. HM Revenue and Customs is expected to receive information from exchanges in 52 jurisdictions from May 31, 2027, while another 15 jurisdictions are expected to begin supplying data in 2028.
UK authorities expect the additional information to help identify crypto activity that has not been declared on tax returns. The Treasury previously projected that adoption of the framework could generate £35 million during the 2026-27 fiscal period and £95 million in 2027-28.
India has taken a similar route through changes to its international reporting framework. In August, the country expanded its tax reporting rules to cover specified crypto assets, central bank digital currencies and certain digital money products under updated FATCA and Common Reporting Standard requirements.
Reporting institutions in India must follow revised account identification and tax residency verification procedures, while accounts with balances above $1 million are subject to enhanced due diligence before being classified for reporting.
Bulgaria’s newly approved provisions require crypto providers operating under its reporting regime to supply the National Revenue Agency with both customer identification details and transaction information covering purchases, sales, transfers and exchanges involving crypto assets.
Source: cryptonews.net