Bulgaria’s National Assembly has approved amendments that require cryptocurrency service providers to report detailed customer identities and transaction records to the National Revenue Agency. The measure, passed on September 9, 2026, completes the transposition of European Union directives on administrative cooperation into national law.

Parliamentary Approval and Vote Details

Lawmakers in the 240-seat chamber voted 149 in favor of the changes to the Tax and Social Security Procedure Code, with no votes against and 10 abstentions. The Cabinet introduced the bill, which cleared its second and final reading. The legislation enables tax authorities in EU member states and participating jurisdictions to exchange information on individuals and entities engaged in crypto-asset transactions.

The approval arrives more than eight months after the EU deadline of December 31, 2025, for member states to incorporate the relevant directives into domestic law. Despite the delay in formal transposition, data collection under the broader European framework began on January 1, 2026.

Reporting Obligations for Crypto Providers

Companies offering crypto-asset services must register with Bulgaria’s National Revenue Agency and submit information on reportable users. Required customer details include name, address, date and place of birth, tax identification number, and jurisdiction of tax residence.

Providers must also disclose transaction information for each type of digital asset processed. This covers total gross amounts, the number of units traded, and the number of purchases or sales. The rules apply to transactions involving fiat currencies as well as crypto-to-crypto exchanges, transfers, and other relevant activities.

Activity conducted entirely within self-custody wallets without interaction with a reporting provider falls outside continuous reporting requirements. Existing customers generally have until January 1, 2027, to supply valid tax-residency self-certification. Providers must issue two reminders and allow a 60-day period before applying account restrictions for non-compliance.

Alignment with EU DAC8 and International Standards

The amendments implement the EU’s Directive on Administrative Cooperation, known as DAC8, which extended tax information reporting obligations to crypto assets. Under the system, providers gather data and submit it to national authorities, which can then exchange it with other jurisdictions when users are tax residents elsewhere. Cross-border exchanges covering the 2026 reporting year are expected by September 30, 2027, with the first full reports due in 2027.

Bulgaria’s framework operates alongside the Organisation for Economic Co-operation and Development’s Crypto-Asset Reporting Framework. That parallel standard began data collection in 48 jurisdictions at the start of 2026, with most early participants scheduled to exchange information in 2027. Enforcement and penalties remain under Bulgaria’s existing domestic tax rules.

Industry and Privacy Considerations

The new requirements have prompted discussion regarding compliance burdens, particularly for smaller firms. Some market participants have noted potential increases in operational costs that could affect competitiveness in the regional fintech sector. Privacy concerns have also been raised about the scope of personal and transactional data collection, though supporters view the rules as a necessary step to improve transparency and address cross-border tax evasion involving digital assets.

National authorities retain responsibility for applying the rules and any related sanctions. The European Commission has positioned the overall framework as a response to challenges national tax systems face when tracking activity that crosses borders.