CARF Tax Rules Go Live In 48 Jurisdictions On Jan 1, 2026

The OECD’s Crypto-Asset Reporting Framework (CARF) will begin impacting crypto users in 48 jurisdictions, including the UK and EU, starting January 1, 2026, as these early-moving jurisdictions start collecting standardized data from exchanges and platforms. CARF requires in-scope providers to collect detailed customer information, verify tax residency, and annually report user balances and transactions to domestic tax authorities for cross-border data sharing. Legal experts view CARF as a "game-changer" that necessitates structural compliance changes for exchanges, including redesigning onboarding flows and upgrading reporting systems, while users will face tougher onboarding and increased audit risk, not new taxes, as existing rules become easier to enforce through standardized, machine-readable data received by agencies like the UK's HMRC. Experts urge users with unresolved reporting issues to address them immediately, as historical data reconciliation will become far easier for tax authorities.

(Source：Cointelegraph)