DAC8 is transforming the landscape of cryptocurrency, with #DeFi positioned centrally within this evolution. The DAC8 directive seeks to address reporting deficiencies, facilitate the collection of tax data, and dispel the notion that decentralized platforms operate beyond governmental oversight. The reality of the situation is more complex, and in many instances, the regulatory framework is more stringent than users typically anticipate.

Indeed, the applicability of regulatory measures hinges on a critical factor: control. The DAC8 framework does not govern, e.g. smart contracts, directly; rather, it oversees the individuals and entities that manage them. Consequently, if a platform, #DAO, or #DEX possesses a dedicated team, a foundational structure, a legal entity, a multisignature wallet, a user interface, or generates revenue, the #eu is likely to categorize it as a Reporting Crypto-Asset Service Provider. This classification entails comprehensive reporting of user data. Only a tiny slice of DeFi escapes this. To sit outside DAC8 you need:

• No admin keys

• No control over upgrades

• No legal entity

• No team maintaining the UI

• Fully immutable code

This is true #DeFi and it is rare. Roughly 9/10 of DeFi sits in the hybrid bucket and is therefore in scope.