What CARF’s New Crypto Tax Tracking Rules Mean for Investors

Crypto investors across dozens of countries are entering a new phase of oversight.

Crypto tax data collection is set to begin in 48 countries, ahead of the global rollout of the Crypto-Asset Reporting Framework (CARF). The framework, developed by the OECD, is designed to give tax authorities clearer visibility into crypto activity worldwide.

While automatic data sharing will not start until 2027, exchanges and other crypto service providers are already required to begin collecting detailed transaction records.

What Exchanges Are Collecting

Under the new rules, major crypto platforms must record how much users paid for digital assets, how much they sold them for, and whether profits were made. They are also required to gather information about users’ tax residency.

The requirement applies not only to centralized exchanges, but also to certain decentralized platforms, crypto ATMs, brokers, and dealers.

A Phased Rollout

The first group of 48 countries is expected to begin recording transactions in 2026, with automatic information exchanges starting in 2027. Another 27 jurisdictions, including Canada, Australia, Mexico, and Switzerland, have until January 1, 2027, to begin collecting data, with exchanges scheduled for 2028.

Hong Kong, part of the second wave, is currently seeking public input on how CARF should be implemented.

Why 2027 Is a Key Turning Point

From 2027, tax authorities will begin automatically sharing crypto data across borders. In the UK, HM Revenue & Customs (HMRC) will exchange information with participating countries, significantly expanding its ability to identify undeclared gains.

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Seb Maley, CEO of tax insurance provider Qdos, called the shift “a major shift in how crypto trading is monitored from a tax perspective,” adding that “HMRC will soon know exactly who is making gains and how much.”

Governments Are Already Preparing for Enforcement

UK authorities have already stepped up action. HMRC has sharply increased the number of warning letters sent to crypto investors and added a dedicated crypto section to annual tax returns.

“HMRC has been concerned for some time about high levels of non-compliance among crypto investors,” said Dawn Register, a tax partner at BDO, noting that international data sharing will give authorities access to a “richer dataset.”

The Bigger Picture

Although CARF data is officially limited to tax purposes, experts warn it could eventually reshape assumptions around crypto privacy. With more than 75 countries committed to the framework, the shift toward global transparency is no longer theoretical.

For crypto investors: reporting rules are tightening, and the era of limited visibility is ending.

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