48 jurisdictions will officially implement the CARF crypto asset reporting framework 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 in 2026.

The framework requires relevant service providers to collect more detailed customer information, verify tax residency, and report users' balances and transactions to local tax authorities annually. This data will then be shared cross-border according to existing information exchange agreements. Lucy Frew, a partner at the international law firm Walkers, stated on the X platform that CARF will fundamentally change the compliance model for digital asset businesses and their clients. 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 residency information. Meanwhile, tax professionals pointed out that while CARF does not create new taxes, it makes existing rules easier to enforce, and tax authorities will be able to identify reporting discrepancies more efficiently through standardized machine-readable data, advising users to resolve historical tax issues during the voluntary disclosure period.