Bulgaria Tightens Crypto Oversight to Meet EU Tax Standards

The new amendments to the Tax and Social Security Procedure Code require firms to gather and submit detailed identifying information for each user, including tax residency, legal name, and address. Beyond identity verification, providers must disclose granular transaction records, covering crypto-to-crypto exchanges, transfers, and purchases involving fiat currencies. This data will be shared with tax authorities across EU member states to ensure transparency in cross-border digital activity.

This legislative update incorporates the EU’s Directive on Administrative Cooperation, known as DAC8. While the directive required transposition by the end of 2025, Bulgaria’s final approval follows a global trend of tightening oversight. The framework operates in tandem with the OECD’s Crypto-Asset Reporting Framework, which facilitates information sharing between 48 jurisdictions worldwide. As authorities prepare for the first data exchanges scheduled for 2027, crypto platforms must now implement rigorous identification procedures or risk enforcement actions against non-compliant users.