The era of ‘suitcase money’ is over: Why your offshore crypto is no longer safe from the taxman
New global tax reporting regimes like CARF are ending the era of hiding offshore crypto gains from tax authorities.Summary
Holders of large, unreported offshore cryptocurrency gains are facing increased scrutiny due to new, invasive tax-reporting regimes like the Crypto Asset Reporting Framework (CARF). CARF, which is now operational in many jurisdictions, compels foreign crypto brokerages and exchanges to report customer transaction data to local tax authorities, who then share it with the customers' home countries, mirroring traditional banking data sharing. Tax attorneys note a surge in clients seeking voluntary disclosure programs to avoid criminal prosecution for past non-compliance. This new transparency combines CARF data with existing on-chain analytics and fiat on/off-ramp information, creating a comprehensive trail for tax authorities. Experts suggest that the old methods of evasion, like using mixers or DeFi to hide assets—analogous to the 'suitcase money' era—are becoming ineffective as over 70 countries commit to CARF, with the first reports expected in 2027.
(Source：CoinDesk)