Global Crypto Tax Reporting Begins: OECD's CARF Framework Launches in 48 Nations

On January 1, 2026, the OECD's Cryptoasset Reporting Framework (CARF) became operational in 48 jurisdictions, marking a major step in global efforts to combat tax evasion in the digital asset space. The framework requires crypto platforms to collect and report detailed user and transaction data to national tax authorities. This initiative expands financial transparency and aligns digital assets with traditional financial reporting standards.

The United Kingdom was among the first to enforce CARF, requiring crypto exchanges and service providers to gather user information and submit it to HM Revenue & Customs (HMRC). These reporting obligations cover both UK-based users and non-resident users interacting with UK-based platforms.

Initial data collection in 2026 will feed into the first full reporting cycle for 2026, with submissions due by May 31, 2027. Starting in 2027, tax authorities in participating countries will automatically exchange information, reducing opportunities for cross-border tax evasion.

Why Did This Happen?

The rollout of CARF was driven by years of international pressure to close tax reporting gaps in the crypto sector. Regulators have long viewed digital assets as a high-risk area for evasion and money laundering. The G20 pushed for action since 2021, and the OECD finalized core rules for CARF in 2022.

UK regulators emphasized that domestic reporting is a key feature of the framework. Unlike previous systems focused on cross-border transparency, domestic reporting allows HMRC to better track local transactions. This approach improves efficiency and reduces duplication in tax enforcement.

The UK also revised the Common Reporting Standard (CRS) to align with CARF, ensuring a unified approach for both crypto and traditional financial institutions. These amendments went into effect in January 2026 and will ease reporting for institutions covering both regimes.

How Are Crypto Platforms Responding?

Crypto platforms are adapting to the new rules by updating data collection and reporting systems. Centralized exchanges, custodial wallet providers, and certain decentralized services must now collect and store detailed user information. This includes transaction history, wallet activity, tax residency details, and more. Platforms must also verify user information through self-certification and identity checks. This aligns crypto reporting with existing global standards for financial transparency.

The UK has taken a firm stance against regulatory arbitrage. Authorities have stated they will not create exceptions for non-custodial or developer-led platforms, even if such models are difficult to regulate. This approach discourages users from moving to unregulated platforms to avoid reporting.

What Are Regulators Monitoring Next?

Regulators are closely watching how effectively platforms implement the new reporting rules. HMRC has already signaled its intent to cross-check exchange reports with Self Assessment tax returns to identify discrepancies. Non-compliance could result in penalties, back taxes, and interest charges.

The first major test for CARF will occur in 2027, when HMRC begins exchanging data with other participating jurisdictions. This will enable a more comprehensive view of global crypto activity and reduce the ability to hide gains in offshore accounts. The U.S. and other major financial centers are also preparing to join the framework. The U.S. plans to adopt CARF in 2028 and begin data exchanges in 2029. This phased rollout suggests a continued international push for greater crypto transparency.

Experts warn that the transition period is critical. Platforms and users must adapt to the new compliance requirements within a compressed timeline. This will test the operational readiness of the crypto industry and highlight any potential challenges in cross-border data sharing. Experts warn that the transition period is critical.