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New international reporting requirements under CARF, and DAC8 within the EU, require crypto platforms to collect Tax Identification Numbers from their users. The purpose is to help tax authorities accurately track and verify crypto-related activities, similar to reporting obligations already imposed on traditional financial institutions.
What is CARF / DAC8 in the European Union?
The Crypto-Asset Reporting Framework (CARF) is an international reporting standard developed by the OECD (Organisation for Economic Co-operation and Development) to enable the automatic exchange of information on crypto-asset transactions.
Within the European Union, this framework has been implemented through the eighth amendment to the European Union's Directive on Administrative Cooperation, also known as DAC8.
Together, these regulations require crypto service providers to submit transaction-related information to tax authorities, thereby promoting tax transparency and combating tax avoidance.
Why are you required to provide a Tax Identification Number (Tax ID)?
As a result of these regulations, Simplex by Nuvei is considered a Regulated Crypto-Asset Service Provider (RCASP). This means we have a legal obligation to determine and verify our users' tax residency.
A Tax Identification Number – TIN (also known as “Tax ID”), allows tax authorities to correctly associate reported transaction information with the relevant taxpayer.
Is this requirement unique to Simplex by Nuvei only?
No. These rules apply to all regulated Crypto-Asset Service Providers (CASPs) operating within the EU and other participating OECD jurisdictions.
As a result, if you use any other regulated crypto exchange or platform, you should expect to be asked for the same information regardless of the provider.
What if I have already completed KYC? Isn't that enough?
Not exactly. KYC (known as “Know Your Customer”) procedures are designed to confirm your identity, whereas a TIN/Tax ID is used to identify the jurisdiction in which you are liable for taxes.
Under applicable regulations, we are required to collect and maintain both types of information.
What new information do we now collect?
In addition to the information we already collect (your full legal name, date and place of birth, and residential address), to satisfy regulatory due diligence obligations, we are now legally obliged to gather and validate the following information:
Country or countries of tax residence.
Tax Identification Number – TIN (Tax ID) – for each country of tax residence.
What qualifies as a TIN (Tax ID)?
The acceptable Tax Identification Number depends on the country where you are a tax resident. Examples include:
• United Kingdom: National Insurance Number (NINO) or UTR.
• Germany: Steueridentifikationsnummer.
• Spain: NIF.
• United States: Social Security Number (SSN).
• Other countries: In many cases, the TIN (Tax ID) is the number shown on a national identity document or an official tax-issued document.
Important notes:
1. Once your country of tax residence has been declared, it may not be possible to amend it later. Please ensure that all information provided is accurate and up to date before submission.
If you do not know or can not locate your TIN (Tax ID), you can refer to the OECD's official website, which includes examples of Tax Identification Numbers used in different countries.
2. Please note that while we collect and report the required information to the appropriate tax authorities, we do not fill in your tax returns.
You remain solely responsible for submitting your tax returns and paying any taxes due, including capital gains tax where applicable.
If you need information about your transaction history through our services for your tax reporting, you can contact our Customer Support team here by initiating a chat at the bottom.
3. Though you will be prompted to provide the TIN number when initiating new payment attempts through our services, in certain cases, we might reach out to you via email and request that you provide the needed information without doing so.
As part of the regulations we must adhere to, users who have had payments made on or after January 1st, 2026, will be required to provide the corresponding information.