The European Commission has issued formal warnings to 12 EU member states, including Belgium, Czech Republic, and Spain, for failing to fully implement the Directive on Administrative Cooperation 8 (DAC8) concerning crypto tax regulations. This directive mandates that crypto-asset service providers report transactions and user data starting January 2026, aiming to enhance tax transparency across the EU. The affected states have two months to address these compliance issues or face potential legal action, including involvement from the Court of Justice. The directive targets cryptocurrency exchanges and custodial wallets, potentially increasing compliance costs and operational challenges for these entities. While the immediate financial impact on specific cryptocurrencies remains unclear, the broader market may experience shifts as compliance measures are enforced.