The framework may eventually be used to link crypto wallets to real identities
Crypto investors in 48 countries are set to face increased reporting requirements as a new global transparency system begins taking shape. Under the Crypto-Asset Reporting Framework, or CARF, crypto wallet transactions will start being tracked for tax purposes, marking a major shift in how digital assets are monitored worldwide.
CARF was developed by the Organization for Economic Co-operation and Development (OECD) to close gaps in tax reporting linked to cryptocurrencies. Although the framework officially comes into force in 2027, crypto service providers in participating countries have already been required to begin collecting transaction data as of January 1.
The reporting rules apply broadly across the industry. Centralized exchanges, certain decentralized platforms, crypto ATMs, brokers, and dealers must all gather information needed for future data sharing. The goal is to give tax authorities clearer visibility into crypto activity and reduce the risk of tax evasion and money laundering.
According to the OECD, many of the countries committed to CARF already have laws in place or are finalizing regulations to enforce data collection. The framework was shaped after pressure from G20 finance ministers, who called for stronger oversight of digital assets beginning in 2021. Core CARF rules were finalized the following year.
The first group of 48 countries will begin recording transactions in 2026, ahead of information exchanges scheduled for 2027. Another 27 jurisdictions, including Australia, Canada, Mexico, and Switzerland, will follow a year later, with data sharing starting in 2028. Hong Kong has also opened consultations on how it plans to implement the system.
While CARF is focused on taxation, some experts believe the data could serve broader purposes. Analysts at TaxBit have warned that the framework may eventually make it easier for authorities to link crypto wallets to real identities, extending its use beyond tax compliance alone.
