Analysis: OECD advances CARF implementation, the "era of offshore crypto asset tax avoidance" is gradually ending

Odaily News As global crypto tax regulation continues to tighten, industry views suggest that the "era of offshore crypto asset tax avoidance" is gradually ending. Large holders of undeclared offshore crypto assets are facing higher compliance risks, and some investors have already begun proactively seeking voluntary disclosure to reduce potential criminal risks. The Crypto-Asset Reporting Framework (CARF), promoted by the Organisation for Economic Co-operation and Development (OECD), has commenced implementation in multiple jurisdictions. It aims to unify global standards for crypto asset information reporting and requires institutions such as trading platforms and brokers to provide account and transaction data to tax authorities. The relevant mechanisms will combine fiat currency deposit/withdrawal data, on-chain analysis, and internal ledger data from trading platforms, significantly enhancing regulators' ability to track undeclared assets. Market participants anticipate that with over 70 countries committed to advancing CARF, the relevant transaction data will be gradually collected starting in 2026 and enter the first round of cross-border tax information exchange in 2027. Requirements for crypto asset tax compliance are expected to continue becoming stricter. (CoinDesk)