From January 2026, CARF rules will require crypto exchanges and users to report transactions for cross-border tax compliance.
The OECD’s Crypto-Asset Reporting Framework (CARF) comes into effect on January 1, 2026, impacting crypto users and exchanges in 48 jurisdictions, including the UK, EU, Uganda, and South Africa. CARF requires crypto-asset service providers to collect detailed customer information, verify tax residency, and report balances and transactions annually to domestic tax authorities. These authorities then share data across borders under existing exchange agreements.
CARF introduces structural changes for exchanges, requiring updates to KYC and AML processes, tax-residency verification, onboarding flows, and reporting systems. Platforms like UK-licensed CoinJar are already preparing for implementation, focusing on compliance while maintaining user trust.
For retail users, CARF does not create new taxes, but increases audit risk as authorities receive machine-readable exchange data. Users are urged to resolve any reporting gaps to avoid scrutiny. Early compliance is seen as a competitive advantage as crypto becomes more integrated into the mainstream financial system.
Discover more from DiutoCoinNews
Subscribe to get the latest posts sent to your email.
