On January 1, 2026, the Crypto-Asset Reporting Framework (CARF) officially entered its data-collection phase in 48 jurisdictions, requiring crypto service providers to begin recording comprehensive transaction details for future exchanges with tax authorities. Developed by the OECD, CARF aims to close gaps in cross-border tax compliance by extending the common reporting standard to digital assets.
Participating entities—including centralized exchanges, certain decentralized platforms, crypto ATMs, brokers and dealers—must capture transaction metadata such as wallet addresses, counterparty information, dates, amounts and asset types. This mandate precedes the start of information exchanges in 2027, during which tax authorities will share data to identify undeclared holdings and incomes. Countries in the first wave include major financial centers that have enacted enabling legislation or are in final stages of enforcement.
The OECD has reported that 48 countries will implement CARF data-collection measures in 2026, while another 27 jurisdictions, including Australia, Canada, Mexico and Switzerland, will join the exchange phase beginning in 2028. G20 finance leaders first endorsed digital asset transparency in 2021, and by 2022 the OECD finalized core CARF rules to standardize reporting across borders.
CARF’s primary objective is to ensure that taxpayers meet obligations regardless of geographic location, but stakeholders warn the framework could enable broader uses. Tax-software provider TaxBit noted that the granular data could become a source for authorities to link crypto addresses to individual identities, potentially aiding fraud investigations and law-enforcement analytics.
Industry groups have called for guidance on data-privacy safeguards and standardized APIs to streamline reporting workflows. Exchanges are investing in compliance teams to integrate CARF requirements with existing anti-money laundering systems. Service providers also face the technical challenge of capturing on-chain activity from decentralized financial applications not explicitly covered under CARF’s scope.
While the rollout has been broadly praised for advancing tax fairness, critics argue that reporting burdens may hamper innovation, especially for smaller platforms with limited compliance resources. Ongoing consultations in Hong Kong are examining both CARF implementation and local tax-reporting standards to balance enforcement with ecosystem growth.
As CARF moves from planning to execution, global coordination among regulators, service providers and technology vendors will be essential to achieve seamless data exchange and preserve user privacy. The framework’s success will be measured by its ability to deter tax evasion without stifling the cryptocurrency sector’s development.
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