The global push for cryptocurrency tax transparency has reached a major milestone as the Crypto‑Asset Reporting Framework (CARF) begins phased implementation across 48 jurisdictions. The framework, developed by the Organisation for Economic Co‑operation and Development (OECD) with the support of the G20, aims to give tax authorities direct insight into crypto transactions worldwide.
Foundation for a global tax transparency system
The CARF, officially scheduled to take effect in 2027, requires exchanges, brokers, crypto ATMs, and certain decentralized platforms in participating nations to keep detailed records of user activity. As of January 1, 2026, entities within the first batch of participating jurisdictions must collect information on transactions, wallet movements, and trading histories.
According to an OECD statement, the goal of the framework is to close major information gaps that have allowed crypto traders to sidestep tax obligations. The organization wrote,
“With respect to transparency for tax purposes, the OECD, working with G20 countries, completed and published the Crypto‑Asset Reporting framework for the reporting and automatic exchange of information (AEOI) in relation to Crypto‑Assets between tax authorities for tax compliance purposes.”
This initiative follows consultations held by the OECD with global regulators in June 2023 to address “tax discrepancies from the crypto industry.” Officials argued that uneven disclosure practices have “limited the visibility of tax authorities” and weakened oversight over digital assets.
Countries prepare for new reporting obligations
The 48 jurisdictions moving first include major economies such as Germany, France, Japan, and the United Kingdom, as well as smaller markets like Malta, Uganda, and the Cayman Islands. These countries will start gathering data throughout 2026 for the first automatic exchanges of information in 2027.
A second group of 27 jurisdictions, including Australia, Canada, Mexico, Switzerland, and Hong Kong, is scheduled to begin exchanges in 2028. One more participant, the United States, expects to start by 2029, giving its agencies additional time to finalize legislative and technical frameworks.
According to the OECD, participating jurisdictions must embed CARF requirements into domestic law and establish national procedures for “due diligence” and “automatic exchange of information.” Some nations will rely on the multilateral Convention on Mutual Administrative Assistance in Tax Matters (MAAC), while others will implement bilateral tax information agreements or EU‑specific coordination systems.
United Kingdom launches automatic data sharing
The United Kingdom is among the first to activate CARF‑related rules. As reported by the BBC, the government has announced that all crypto purchasers must now submit account information to HM Revenue & Customs (HMRC). Crypto exchanges are legally obliged to report user data, including balances and realized profits.
Failure to comply may result in monetary penalties. HMRC confirmed that it will use the incoming data to identify unpaid taxes owed on digital asset gains.
“HMRC has been concerned for some time about high levels of non‑compliance among crypto investors. HMRC is running a disclosure facility where taxpayers can come clean on undeclared gains and unpaid tax prior to April 2024,” Dawn Register, partner at BDO, told the publication.
Authorities expect that automatic data collection will uncover tens of millions of pounds in unpaid crypto‑related taxes.
Expanding global participation and next steps
By late 2025, 59 countries had publicly committed to CARF and signed a joint statement confirming political support for its implementation. The G20 Finance Ministers endorsed the initiative and requested that the Global Forum on Transparency and Exchange of Information for Tax Purposes oversee technical and legal alignment.
The Hong Kong administration said in a December 2025 news release that it had begun consultations with industry participants and auditors to assess integration with existing tax standards. The forum invited feedback from exchanges and wallet providers to determine “practical approaches to compliance” before data collection begins.
OECD data show that several participating states have already completed their domestic legislative procedures, while others are finalizing enforcement rules and infrastructure. Regulators expect more than 50 nations to be ready by the time information exchanges begin in 2027.
Implications for the crypto sector
The new system compels crypto service providers to maintain detailed user records and adopt standardized reporting channels. The requirement applies to both centralized and eligible decentralized entities that facilitate exchanges of digital assets.
CARF might help reduce money laundering and hidden income streams within the crypto ecosystem by giving authorities a consistent method to verify trading activity. The data will also ensure taxpayers meet obligations regardless of where in the world they execute transactions.
The OECD emphasized that CARF is “for tax compliance purposes” but added that its design aligns with international data protection standards. However, industry observers have noted that the scope of information involved could also enhance transparency in areas extending beyond taxation.
The global rollout represents one of the most coordinated cross‑border efforts to date in the crypto policy arena. By setting unified rules for how countries handle transaction information, CARF could reshape the interaction between crypto markets, regulators, and fiscal agencies as 2026 unfolds.
Oleksii Shumak
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