Express
48 Jurisdictions to Implement CARF Cryptocurrency Reporting Framework from January 1
Summary: According to reports, 48 jurisdictions, including the UK and EU, will officially begin collecting standardized data in 2026 under the Cryptocurrency Asset Reporting Framework (CARF) released by the OECD. The framework requires relevant service providers to collect more detailed customer information, verify tax residency, and report user balances and transactions to local tax authorities annually. ...
According to reports, 48 jurisdictions, including the UK and EU, will officially begin collecting standardized data in 2026 under the Cryptocurrency Asset Reporting Framework (CARF) released by the OECD.
The framework requires relevant service providers to collect more detailed customer information, verify tax residency, and report user balances and transactions to local tax authorities annually. This data will then be shared cross-border based on existing information exchange agreements. Lucy Frew, partner at international law firm Walkers, stated on X platform that CARF will fundamentally change the compliance model for digital asset businesses and customers. For exchanges, this will involve redesigning Know Your Customer and anti-money laundering processes, as well as upgrading reporting systems. Asher Tan, CEO of licensed UK exchange CoinJar, mentioned that users will be required to provide additional tax residency information. Tax professionals noted that while CARF does not introduce new taxes, it makes existing rules easier to enforce, allowing tax authorities to more efficiently identify tax discrepancies through standardized machine-readable data. They recommend users to address historical tax issues during the voluntary disclosure period.
Tags:
Link: 48 Jurisdictions to Implement CARF Cryptocurrency Reporting Framework from January 1 [Copy]
