CARF Goes Live: 48 Countries Begin Crypto Tax Data Collection

The Crypto-Asset Reporting Framework (CARF) has officially come into effect. As of January 2026, crypto exchanges and service providers in 76 jurisdictions must now collect detailed transaction data from their users.

What Changed This Month

The OECD's CARF framework, developed in response to G20 concerns about crypto tax evasion, is now operational. Crypto-asset service providers (CASPs) in participating countries are legally required to:

• Collect user identity information (name, address, date of birth, tax ID)
• Record all crypto transactions including trades, swaps, and transfers
• Obtain tax residency self-certifications from users
• Prepare annual reports for tax authorities

Which Countries Are Participating?

The first wave includes all 27 EU member states (through the DAC8 directive), plus major economies:

• Europe: All EU countries, UK, Norway, Iceland, Liechtenstein
• Americas: Brazil, Canada, Colombia, Mexico
• Asia-Pacific: Japan, South Korea, Indonesia, New Zealand
• Other: Israel, South Africa, and several British territories

When Will Tax Authorities Receive This Data?

The data collected during 2026 will be reported to tax authorities in 2027. Countries will then automatically exchange this information with each other, allowing tax agencies to cross-check whether their residents have accurately reported crypto holdings and gains.

What This Means for Crypto Users

If you use a regulated exchange or custody service in a participating country, your transaction history is now being recorded for tax reporting purposes. This applies regardless of whether you've sold crypto for fiat currency or simply swapped between different tokens.

Users who have been accurately reporting their crypto taxes should see no change. Those who haven't may want to review their tax filings before the first data exchange in 2027.

More Countries Joining

An additional 27 jurisdictions will begin collecting data in 2027, including Switzerland, Singapore, Hong Kong, and the UAE. The United States is expected to join in 2028, with first exchanges in 2029.