The Bulgarian parliament has passed a draft law bringing national legislation in line with the European Union's DAC8 directive, a move that will strip away the anonymity previously enjoyed by many cryptocurrency users in the country.
Under the new rules, Bulgarian officials will gain access to identification data of the persons behind each transaction involving cryptocurrencies. The change closes a gap that had allowed crypto holders in Bulgaria to transact with a degree of privacy not available to users of traditional financial instruments.
DAC8, the EU directive at the heart of the reform, entered into force at the beginning of the new year. It extends the bloc's existing framework for automatic exchange of tax information to cover crypto-assets, requiring service providers to report data that tax authorities across member states can then share and cross-reference.
What Changes for Crypto Users
For individuals trading or holding cryptocurrencies in Bulgaria, the practical effect is a loss of the pseudonymity that has characterised much of the sector's early years. Where transactions once passed without a clear link to a verified identity in the eyes of tax authorities, officials will now be able to trace holdings and transfers back to the people behind them.
The move fits into a broader EU effort to bring crypto-assets under the same reporting standards long applied to bank accounts, securities and other financial holdings. By adopting DAC8 into national law, Bulgaria joins other member states in aligning domestic tax administration with the bloc-wide push for transparency in digital asset markets.
Part of a Wider EU Push
DAC8 does not operate in isolation. It sits alongside other EU initiatives aimed at tightening oversight of the crypto sector, part of a pattern in which Brussels has steadily expanded the reach of financial reporting rules to cover digital assets that previously sat outside conventional tax and anti-money-laundering frameworks.
For Bulgarian authorities, the new law provides a legal basis to request and receive identifying data from crypto service providers, mirroring obligations already familiar to banks and other regulated financial institutions. The change is expected to affect how crypto exchanges and platforms operating in or serving Bulgarian users handle customer data going forward, as they adjust to reporting requirements tied to the directive.
No further details on implementation timelines or enforcement mechanisms were included in the parliamentary text as passed.
