Crypto tax reporting expands as UK and dozens of countries adopt CARF

The U.K. and nearly 50 jurisdictions have begun implementing the OECD's Cryptoasset Reporting Framework, and exchanges must collect users' tax residency and report crypto transactions.

The U.K. and many other countries have begun implementing the OECD's Cryptoasset Reporting Framework (CARF). The framework is intended to bring crypto transactions into international tax reporting standards. Under CARF, crypto exchanges and similar service providers are required to collect users' tax residency details and report transaction data to tax authorities. The U.K. has set a 2026 start for data collection by exchanges and scheduled cross-border information sharing to begin in 2027. Key points: - CARF was developed by the OECD to extend international tax reporting to crypto assets, including cryptocurrencies, stablecoins, NFTs, and certain DeFi arrangements involving intermediaries. - Exchanges and service providers must collect tax residency and identifying information and report annual transaction data to local tax authorities. - The U.K. requires exchanges serving U.K. users to gather required data from 2026, with cross-border sharing due to start in 2027. - A total of 75 countries have committed to CARF and about 48 jurisdictions are moving ahead with implementation. - The United States is expected to implement the framework in 2028, with international data exchanges beginning in 2029. Summary: The framework will bring wider reporting and cross-border data sharing for crypto transactions in participating countries, which officials say should reduce undeclared gains. Timetables differ by jurisdiction, with staged rollouts and data exchanges planned over the next few years.