Crypto Transactions and Tax Transparency: What the New Automatic Exchange of Information Means from 2026

Cabinet of Ministers Regulation No. 751 of 9 December 2025
(enters into force on 1 January 2026)

On 9 December 2025, the Cabinet of Ministers adopted Regulation No. 751 on the automatic exchange of information on crypto-asset transactions. The Regulation establishes the procedure for collecting information on crypto-asset transactions and automatically transmitting it to the State Revenue Service (SRS) and foreign tax authorities.

This regulatory framework forms part of the European Union and international tax transparency system, the objective of which is to ensure more effective tax supervision in the area of crypto-asset transactions.

Regulation No. 751 implements the requirements of EU Council Directive (EU) 2023/2226 (DAC8), which extends the automatic exchange of information regime to include crypto-asset transactions. The Regulation is also aligned with the OECD Crypto-Asset Reporting Framework (CARF), which serves as a global standard for reporting crypto-asset transactions.

The Regulation provides for:

the procedure by which crypto-asset service providers submit information to the SRS;
the types of reportable transactions and the scope of information to be provided;
automatic exchange of information between the Latvian tax authorities and those of other countries.

Transactions subject to reporting include:

crypto-asset exchange transactions;
crypto-asset transfers;
payments for goods or services where the transaction value exceeds the equivalent of USD 50,000.

The reporting obligation primarily applies to crypto-asset service providers; however, the information provided may relate to both natural and legal persons.

The SRS acts as the central competent authority responsible for receiving, verifying, and automatically exchanging information on crypto-asset transactions with tax administrations of other countries.

How will these rules affect persons involved in crypto-assets?

From the client’s perspective, Cabinet Regulation No. 751 does not introduce new taxes; however, it significantly increases the transparency of information relating to crypto-asset transactions. In practice, this means that the SRS will have access to substantially more information about the crypto-asset activities of Latvian tax residents, including transactions carried out via foreign crypto-asset service providers.

It is important to emphasize that the exchange of information will take place automatically, without a specific request from the SRS, and will cover certain types and volumes of transactions.

What does this mean for natural persons?

For individuals who invest in crypto-assets or use them for payments, the most significant changes are:

information on crypto-asset transactions may be transmitted to the SRS even if the transactions were carried out on foreign platforms;
the likelihood increases that the SRS will be able to compare received information with the individual’s submitted tax declarations;
it becomes particularly important to correctly declare income from the disposal, exchange, or use of crypto-assets for payments.

Individuals who previously assumed that crypto-asset transactions were outside the scope of tax authority oversight should take into account that this assumption no longer reflects reality.

What does this mean for companies and crypto-asset service providers?

For companies operating in the crypto-asset sector, the Regulation imposes additional obligations:

to implement and document client identification and tax residency determination procedures;
to ensure data collection and reporting to the SRS in the prescribed formats;
to review internal processes for compliance with tax, AML, and data protection requirements.

In practice, this may result in additional administrative burden, but at the same time provides clearer “rules of the game” and a more harmonized regulatory framework across the European Union.

Will anything change in everyday practice?

For everyday crypto-asset users, the changes will be indirect—no new obligation is introduced to independently report transactions to the SRS. However, the risk increases that discrepancies in tax declarations may be identified during post-tax audits.

Therefore, it is particularly important to:

retain transaction histories and documentation;
track the value and type of transactions;
timely assess tax consequences before carrying out large transactions.

Legal advice for clients

From a legal perspective, it is recommended to:

proactively assess the structure of crypto-asset transactions and their reflection in tax declarations;
for individuals – seek advice on income classification and declaration procedures;
for companies – prepare for DAC8 reporting requirements by conducting an internal compliance audit;
where necessary, correct previously submitted tax declarations if deficiencies are identified.

Timely legal advice can significantly reduce tax risks and potential sanctions.

Conclusion

Cabinet of Ministers Regulation No. 751 represents a significant shift in the regulation of crypto-assets. The key changes do not affect the legality or permissibility of crypto-asset transactions themselves, but rather their transparency from the perspective of tax authorities.

For individuals and companies engaged in crypto-asset transactions, the introduction of the automatic exchange of information means a substantially higher level of visibility for tax administrations, both at the national and international level. Accordingly, this is an appropriate time to reassess existing practices, ensure accurate tax reporting, and prepare internal processes for compliance with DAC8 and CARF requirements.

Proactive compliance and timely legal advice can significantly reduce tax risks and help avoid potential disputes or sanctions in the future.

References

Cabinet of Ministers Regulation No. 751 of 9 December 2025
Regulation on the Automatic Exchange of Information on Crypto-Asset Transactions.
Law “On Taxes and Duties”, Section 15, Paragraph Twelve.
Council Directive (EU) 2023/2226 (DAC8)
On administrative cooperation in the field of taxation.
European Commission – Administrative Cooperation in Taxation (DAC8)
Directorate-General for Taxation and Customs Union.
OECD Crypto-Asset Reporting Framework (CARF).
Analytical commentary on DAC8 and crypto-asset reporting
(e.g., professional tax and legal publications).