Under CARF, in-scope crypto-asset service providers will be required to collect more detailed customer information, verify tax residency, and annually report users’ balances and transactions to their domestic tax authorities, which will then share that data across borders under existing information-exchange agreements.
From January 1, 2026, crypto users and digital asset exchanges in 48 jurisdictions, including the United Kingdom, The European Union, Uganda, and South Africa will begin to feel the first concrete effects of the Organization for Economic Co-operation and Development’s (OECD’s) Crypto-Asset Reporting Framework (CARF) as early-moving jurisdictions start collecting standardized data from platforms and exchanges.
Under CARF, in-scope crypto-asset service providers will be required to collect more detailed customer information, verify tax residency, and annually report users’ balances and transactions to their domestic tax authorities, which will then share that data across borders under existing information-exchange agreements.
REGULATION | South Africa Adopts the Crypto-Asset Reporting Framework (CARF) Global Standard to Crack Down on Crypto Money Laundering
Here are the jurisdictions included in the 48 jurisdictions enforcing the Crypto-Asset Reporting Framework (CARF) from the OECD (the list reflects those expected to implement and/or commence exchanges under CARF commitments around 2026-2027)
According to Lucy Frew, partner and head of the global Regulatory & Risk Advisory Group at international law firm Walkers, CARF is a ‘game-changer’ that is ‘set to reshape compliance for digital asset businesses and customers.’
In practice, Frew said, this will mean:
She added that companies that act early to adjust their systems and processes will be best positioned to manage risk and maintain trust, while those that delay could face regulatory and reputational consequences.
For exchanges, CARF is not just a cosmetic compliance update but a structural change.
Firms will need to integrate CARF requirements into existing Know Your Customer (KYC) and Anti-Money-Laundering (AML) processes, redesign onboarding flows to capture tax-residency and self-certification data, and build or upgrade reporting systems.
This may require new governance frameworks, staff training, and closer coordination between compliance, engineering, and support teams, especially for platforms operating across multiple CARF and non-CARF jurisdictions.
UK-licensed exchanges such as CoinJar are already preparing for these changes. Asher Tan, CEO and Co-Founder, says that as CARF rules are phased in, users will be asked to provide additional tax-residency information.
He noted that the challenge lies in implementing the new requirements in a way that ‘meets regulatory expectations while preserving the clarity, trust, and user-friendly experience people expect.’
Tan added that for regulated platforms, striking this balance could become a competitive advantage as crypto ‘moves further into the mainstream financial system and as those looking to trade digital assets look for compliant platforms.’
REGULATION | FATF Crypto Compliance Checklist Raises Red Flags – Which African Countries Are Next?
Retail crypto users, meanwhile, are expected to face a sharp rise in audit risk, although CARF itself does not create new taxes. As a UK-based crypto taxation specialist, The Bitcoin & Crypto Accountant, explained, the framework does not introduce new tax liabilities but makes existing rules enforceable by tax authorities.
From 2026, His Majesty’s Revenue and Customs (HMRC) in the UK will receive standardized, machine-readable data directly from exchanges, including those based overseas. This will make it much easier for authorities to identify mismatches between tax returns and exchange data.
Common issues among users, the accountant said, include not just deliberate avoidance but omissions, such as unreported offshore exchange activity, frequent small disposals assumed to be immaterial, and transactions in Decentralized Finance (DeFi) or non-fungible tokens (NFTs) that were misreported or not reported at all.
He urged UK users to address any unresolved reporting issues now, noting:
“While reporting begins in 2026, the data will inevitably be used to question historic positions where figures do not reconcile. Anyone with unresolved issues should be addressing them now, while voluntary disclosure is still available.”
