Bulgaria’s National Assembly has approved new legislation requiring cryptocurrency service providers to submit detailed customer and transaction data to the country’s tax authorities, bringing Bulgarian law in line with European Union standards.
Parliament passes strict disclosure requirements
The bill, backed by 149 members of parliament, faced no opposition and saw 10 abstentions. It amends Bulgaria’s Tax and Social Security Procedure Code and marks the final step in the legislative process, following introduction by the Cabinet and a second reading in parliament.
According to the new rules, all digital asset companies operating in Bulgaria must register with the National Revenue Agency. They are now required to report extensive information on their clients, including names, addresses, dates and places of birth, tax identification numbers, and countries of tax residence. The aim is to enhance the government’s ability to identify individuals involved in cryptocurrency transactions.
In addition to customer data, crypto providers must disclose information about the assets involved in each transaction, transfer, or exchange carried out on behalf of customers. This includes the total gross amounts from transactions, the volume of coins or tokens traded, and the number of purchases and sales conducted involving either fiat currencies or other crypto assets.
Providers must report all types of transactions, ensuring both crypto-to-fiat and crypto-to-crypto trades are covered under the new regime.
These requirements are designed to close potential reporting loopholes, especially for transactions made solely in cryptocurrency, which previously might have avoided oversight.
Bulgaria adopts the EU DAC8 standard
The legislative changes are part of Bulgaria’s effort to transpose the EU’s DAC8 directive into national law. DAC8, adopted by the European Union, expands mandatory tax reporting to include crypto assets in all member states. Bulgaria’s approval comes over eight months after the original December 31, 2025, deadline set for transposition.
Under these standards, EU member states and additional partner jurisdictions will exchange information on crypto users to identify suspected unreported earnings or capital gains.
Crypto providers in Bulgaria are mandated to start collecting the required information from January 1, 2026. The first comprehensive reports under the new system are expected in 2027.
| Regulation | Requirement | Start Date |
|---|---|---|
| Bulgaria DAC8 Law | Crypto providers register and report to NRA | 2026 |
| EU DAC8 Directive | Cross-border exchange of crypto tax data | 2026 |
| OECD Crypto-Asset Reporting Framework | Global crypto tax reporting | 2026 |
Providers must also capture withdrawals to external addresses, meaning transactions to self-custody wallets are reportable when processed through a regulated entity. However, internal transfers within self-custody wallets handled by users alone are not covered by ongoing reporting obligations, as the framework focuses on activity via regulated platforms.
Mini dictionary: DAC8, or the eighth revision of the Directive on Administrative Cooperation, is an EU directive that mandates tax authorities to exchange information on transactions involving digital assets. Its aim is to increase transparency and combat tax evasion in cryptocurrency markets across EU member states.
Existing customers are required to submit valid tax-residency data by January 1, 2027. If they fail to do so after two reminders and a 60-day grace period, accounts may become subject to restrictions.
International alignment and enforcement
Bulgaria’s framework will operate in tandem with the Crypto-Asset Reporting Framework, an initiative overseen by the Organisation for Economic Co-operation and Development. This international system commenced data collection across 48 jurisdictions at the beginning of 2026, supporting cross-border tax compliance efforts.
Implementation and enforcement of Bulgaria’s crypto tax rules remain the responsibility of national authorities, which will apply penalties under existing tax legislation to ensure adherence.
The European Commission stated that the coordinated approach is intended to address cross-border tax evasion associated with digital assets, as national enforcement alone has struggled to keep pace with the increasing volume and complexity of crypto transactions.
