Crypto tax reporting is entering a new phase. Starting this year, crypto service providers in 48 countries are beginning to collect detailed transaction data as part of the OECD’s Crypto-Asset Reporting Framework (CARF), even though the official exchange of information between tax authorities will begin in 2027.
This move signals a global shift toward tighter oversight of crypto activity, with the goal of improving tax compliance and reducing cross-border tax evasion and money laundering.
What Is CARF and Why It Matters
CARF is an international tax transparency framework developed by the Organisation for Economic Co-operation and Development (OECD). Its main purpose is to ensure that crypto investors pay the correct amount of tax, no matter where in the world they trade or hold digital assets.
Under CARF, crypto service providers—such as centralized exchanges, certain decentralized platforms, crypto ATMs, brokers, and dealers—must identify users and record relevant transaction data. While the framework officially comes into force in 2027, many participating countries now require providers to start collecting this data from January 1 onward.
The push for CARF began with G20 finance ministers in 2021, amid growing concerns that cryptocurrencies could be used to hide income and assets offshore. By 2022, the OECD had finalized the core rules, and countries have since been working to pass the necessary legislation.
According to the OECD, many jurisdictions already have laws in place or are in the final stages of enforcing rules that mandate CARF-related data collection.
Which Countries Are Involved and What Happens Next
The first group of 48 jurisdictions will start recording crypto transactions during 2026, with the first international data exchanges scheduled for 2027. This means tax authorities in those countries will soon be able to receive standardized information about their residents’ crypto activity abroad.
A second group of 27 jurisdictions—including Australia, Canada, Mexico, and Switzerland—will follow one year later. These countries have until January 1, 2027, to begin collecting data and are expected to start sharing information in 2028.
Hong Kong, which is part of the second batch, has already launched consultations on how CARF will be implemented locally, alongside updates to existing tax reporting standards. Authorities there have linked the move directly to efforts to combat cross-border tax evasion.
Although CARF data is officially limited to tax purposes, some industry observers believe its impact could be much broader. Crypto tax software firm TaxBit has warned that the framework could eventually give authorities unprecedented visibility into crypto ownership, making it easier to link wallets to real-world identities and potentially support investigations into financial crime.
