Crypto investors in 48 countries will begin having their crypto wallet transaction data recorded for tax purposes this year, as the long-awaited Crypto-Asset Reporting Framework (CARF) starts rolling out worldwide.
Developed by the OECD, CARF is an international tax transparency framework set to formally take effect in 2027. However, from Jan. 1, crypto service providers in participating jurisdictions — including centralized and certain decentralized exchanges, crypto ATMs, and brokers and dealers — are already required to start collecting the relevant transaction data.
The move signals a global push toward greater transparency aimed at combating tax evasion and money laundering.
Many countries prepared to collect tax data
In a November update, the OECD said a growing number of jurisdictions that have committed to exchanging information under CARF in 2027 have already enacted legislation requiring crypto service providers to collect CARF-related data, or are in the final stages of implementing those laws.
One of CARF’s primary objectives is to help tax authorities ensure that taxpayers comply with their tax obligations, regardless of where crypto transactions are conducted globally.
G20 finance ministers have been calling for stronger oversight since 2021, and in 2022 the OECD finalized the core rules governing CARF.
The first group of 48 countries is expected to begin recording crypto transactions in 2026, ahead of data exchanges starting in 2027. A second group of 27 jurisdictions, however, will not begin sharing information until 2028.
CARF data may extend beyond tax enforcement
Jurisdictions in the second group — which includes Australia, Canada, Mexico, and Switzerland — have until Jan. 1, 2027, to begin collecting the required data. Hong Kong, also part of this group, is currently seeking public input on both CARF implementation and proposed changes to tax reporting standards, according to a news release issued Tuesday.
The announcement linked the initiative to the local government’s efforts to combat cross-border tax evasion.
Although CARF data is formally limited to tax-related use, crypto tax software firm TaxBit said in November that the framework could eventually provide unprecedented visibility into crypto ownership and identity information. Such access, the firm noted, could enable authorities to identify previously anonymous crypto holders, serve as a source of intelligence, and help link digital assets to criminal activity.
