Many jurisdictions had domestic crypto reporting requirements before CARF. Understanding the interaction between CARF and national rules is important for compliance.
US Framework
Existing Rules
- Form 1099-K for payment processors
- Proposed Form 1099-DA for brokers
- FBAR for foreign accounts
CARF Interaction
US will implement CARF for international exchange while maintaining domestic reporting.
UK Approach
Existing Rules
No specific crypto reporting regime pre-CARF.
CARF Implementation
UK implementing CARF as primary crypto reporting framework.
Asian Markets
Japan
Existing exchange reporting requirements; CARF adds international element.
Singapore
Implementing CARF aligned with existing regulatory approach.
Korea
Domestic crypto taxation evolving alongside CARF commitment.
CARF is driving convergence toward common definitions, aligned requirements, and coordinated timelines across jurisdictions.
Harmonization Trends
CARF is driving convergence:
- Common definitions
- Aligned reporting requirements
- Coordinated timelines
Compliance Strategy
For global CASPs:
- Map all applicable requirements
- Identify overlaps and gaps
- Design for superset compliance
- Monitor harmonization progress
Conclusion
CARF is becoming the global standard, but national variations will persist. Plan for complexity.
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