48 countries advance in cryptocurrency tax regulation, the global CARF framework officially launches in 2026

At the beginning of this month, a global cryptocurrency asset regulation reform officially took effect. A total of 48 jurisdictions worldwide, including the United Kingdom and EU member states, have simultaneously launched a cryptocurrency tax reporting framework, marking a new era of transparency in digital asset transactions. The “Crypto Asset Reporting Framework” (CARF), developed by the Organisation for Economic Co-operation and Development (OECD), has been rolled out globally since January 1st of this year and is expected to profoundly change the tax reporting environment for cryptocurrency investors worldwide.

Cryptocurrency Tax Transparency: 48 Countries Implement New Framework Simultaneously

This international tax transparency framework, promoted by the OECD, will officially come into effect in 2027. However, participating jurisdictions have already taken the lead, requiring cryptocurrency service providers to start collecting necessary transaction data from this month. According to an update report released by the OECD in November, an increasing number of jurisdictions have committed to exchanging information under the CARF framework starting in 2027. These regions have enacted the necessary legislation to mandate crypto service providers to collect and retain complete data related to CARF.

The CARF framework represents a coordinated international effort aimed at breaking the long-standing anonymity of cryptocurrency transactions. It establishes a unified global standard and enables automated information exchange mechanisms between participating countries. Under reciprocal agreements, HM Revenue & Customs (HMRC) in the UK will begin data exchanges with EU member states, Brazil, the Cayman Islands, South Africa, and other participating countries starting in 2027.

Notably, the United States, as the largest global crypto asset market, plans to implement CARF in 2028 and officially start information exchange in 2029. Of the 75 countries committed to implementing this framework, 48 have already actively enacted relevant laws, with others to follow gradually. This phased global rollout is forming an increasingly interconnected international tax enforcement system.

New Exchange Requirements: Cryptocurrency User Data Must Be Collected

For cryptocurrency exchanges worldwide, the new rules bring substantial operational changes. Exchanges operating within participating jurisdictions—including centralized exchanges, decentralized exchanges, crypto ATMs, and brokers—must now retain complete user transaction records.

These records must include detailed information covering asset types, acquisition dates, cost basis, disposal dates, transaction gains, related expenses, and users’ crypto wallet addresses. This standardized data collection approach establishes a uniform basis for global crypto tax reporting, ensuring tax authorities in different countries can access consistent information formats.

The CARF framework treats cryptocurrency transactions as taxable events—whether through direct sales, exchanges between different cryptocurrencies, or participation in decentralized finance (DeFi) activities—all are included within taxable scope. This fundamentally changes how digital asset holders handle their tax obligations.

Checklist for Crypto Holders: Compliance Is Now Essential

For crypto users and traders worldwide, the new rules require immediate compliance actions. Individuals must submit complete personal information to their crypto service providers before the reporting deadline and keep detailed records of all transaction activities.

Tax authorities have explicitly stated that non-compliance will face severe penalties. Enforcement mechanisms have also been upgraded to identify underreported or unreported crypto gains. For crypto traders, this means:

• Reviewing existing holdings and recording the cost and gains of each transaction
• Organizing historical data from all trading platforms to ensure completeness
• Verifying the accuracy of personal tax registration information on the exchanges used
• Understanding specific tax regulations related to crypto assets in their jurisdiction

The implementation of this framework reflects an increasing international consensus on crypto regulation and tax compliance. Wherever they are, crypto users will face stricter scrutiny and audit risks. This historic shift not only alters the tax status of cryptocurrencies but also signifies a new stage in global financial transparency.