The Future of CARF: What's Next?

CARF is not a static framework. As the crypto industry evolves and implementation experience accumulates, CARF will continue to develop. Understanding likely future directions helps organizations prepare.

Expansion to New Jurisdictions

The current 48+ committed jurisdictions represent just the first wave:

Expected Additions

• Major Economies: Remaining G20 members likely to join
• Financial Centers: Dubai, Hong Kong examining participation
• Regional Leaders: Brazil, India, South Africa under discussion

Global Forum Pressure

The Global Forum on Tax Transparency will increasingly pressure non-participants. Jurisdictions outside CARF may face:

• Peer review criticism
• Reduced exchange relationships
• Reputational consequences
• Potential blacklisting

DeFi and Emerging Assets

DeFi-Specific Rules

The OECD is actively developing DeFi guidance:

• Clearer definitions of responsible parties
• Interface provider obligations
• Cross-chain transaction handling
• Protocol-level requirements

NFT Clarification

Expect more detailed guidance on:

• Which NFTs are covered
• Valuation methodologies
• Fractionalized NFT treatment

New Asset Types

As crypto evolves, CARF will address:

• Real-world asset tokenization
• Soulbound tokens
• New consensus mechanisms
• Cross-chain wrapped assets

Technical Enhancements

XML Schema Updates

The OECD schema will evolve to accommodate:

• Additional data elements
• New transaction types
• Improved validation rules
• Better error handling

API-Based Reporting

Future iterations may support:

• Real-time data submission
• API-based reporting alternatives
• Automated validation feedback

Blockchain Integration

Potential use of blockchain for:

• Immutable audit trails
• Cross-border data sharing
• Automated compliance verification

Integration with Other Frameworks

CRS Alignment

Closer integration between CARF and CRS:

• Unified due diligence procedures
• Combined reporting where possible
• Consistent definitions and concepts

AML Coordination

Alignment with FATF crypto guidance:

• Shared customer identification standards
• Travel rule integration
• Suspicious transaction referrals

Securities Regulation

Coordination with securities frameworks:

• Security token classification
• Overlapping reporting obligations
• Regulatory perimeter clarity

Long-Term Vision

Global Coverage

The ultimate goal is universal participation, ensuring crypto-assets cannot be hidden from tax authorities anywhere.

Real-Time Transparency

Moving from annual reporting toward more real-time information sharing as technology enables.

Automated Compliance

Building compliance into protocols and infrastructure rather than relying solely on post-hoc reporting.

Preparing for the Future

Organizations should:

• Build flexible systems that can adapt to new requirements
• Monitor OECD working group activities
• Participate in consultation processes
• Invest in compliance technology that can evolve
• Maintain relationships with regulators

Conclusion

CARF's future is one of expansion and evolution. The framework will encompass more jurisdictions, more asset types, and more sophisticated reporting requirements. Organizations that view compliance as an ongoing journey rather than a one-time project will be best positioned for success.