The EU's regulatory requirements for crypto assets have been upgraded again. Digital asset service providers operating within the EU—including various trading platforms, some self-custody wallet providers, and others—must now do one thing: collect and verify users' identity information and tax residency.

More importantly, there is a timeline. Starting in 2026, these service providers will be required to automatically compile all user transaction data annually and report directly to the tax authorities of their respective countries. This reported information will also be shared and circulated among EU member states.

What does this mean? For users holding assets like PLAY, AVNT, PIPPIN, transparency will reach unprecedented levels. Cross-border transactions and profit settlements will all be brought into the scope of each country's tax supervision. For exchanges and wallet service providers, compliance costs will significantly increase—from user verification to data management and periodic reporting, every step will require investment. While the EU promotes the standardization of the crypto market, it is also redefining the boundaries of user privacy and compliance.