The CARF crypto asset reporting framework will be officially implemented in 48 jurisdictions starting January 1.

According to the OECD's Crypto Asset Reporting Framework (CARF), 48 jurisdictions, including the UK and the EU, will officially begin collecting standardized data from January 1, 2026. This framework requires relevant service providers to collect more detailed customer information, verify tax residency, and report users' balances and transactions annually to local tax authorities. This data will then be shared cross-border in accordance with existing information exchange agreements.

Lucy Frew, a partner at the international law firm Walkers, wrote on the X platform that CARF will fundamentally change the compliance model for digital asset businesses and customers. For exchanges, this will involve redesigning Know Your Customer and anti-money laundering processes, as well as upgrading reporting systems. Asher Tan, CEO of the UK-licensed exchange CoinJar, stated that users will be required to provide additional tax and residency information. Meanwhile, tax professionals point out that while CARF does not create new taxes, it makes existing rules easier to enforce. Tax authorities will be able to more efficiently identify tax discrepancies through standardized, machine-readable data, and users are advised to resolve historical tax issues during the voluntary disclosure period.