Crypto Tax Anonymity Ends: 48 Nations Implement Global Reporting Rules

The Crypto-Asset Reporting Framework (CARF) is set to start on January 1, 2026, ending the era of tax anonymity for crypto assets. This global tax reporting regime requires crypto service providers in 48 countries to collect detailed user transaction data for tax authorities.

Developed by the OECD and supported by the G20.
Applies to exchanges, brokers, and digital asset service providers.
Firms must identify clients' tax residency and record crypto transactions, including crypto-fiat exchanges and transfers.

Data collection begins for the 2026 calendar year with the first information exchange among international tax authorities starting in 2027. The participating jurisdictions include the United Kingdom and EU member states.

Industry Response

Major platforms like Coinbase and Kraken have been preparing for 18 months.
Smaller exchanges may struggle with compliance costs, potentially leading to closures or mergers.

CARF aligns the digital asset industry with traditional finance transparency standards, similar to the Common Reporting Standard for banks. It poses new compliance challenges but standardizes operational rules, enhancing enforcement capabilities for global tax agencies and increasing audit risks.