Here's something that might catch a lot of people off guard: this regulation actually covers every single country across the European Union. No exceptions.

What does that mean in practice? Let's say you transfer just $2 from your personal wallet to any exchange that requires KYC verification. That seemingly insignificant transaction could trigger a chain reaction if you've been sitting on years of unreported crypto gains. Tax authorities in EU member states are tightening their monitoring systems, and even small transactions can flag your entire transaction history for review.

The risk is real. Once that connection is made between your wallet and your identity through a KYC platform, regulators can potentially trace back through years of activity. If you haven't been keeping up with your tax obligations, that tiny deposit could expose everything.

If you haven't already mapped out your tax situation and compliance strategy, now would be the time to sort it out. Don't let a micro-transaction turn into a macro-problem.