The Crypto-Asset Reporting Framework (CARF) is a global tax transparency standard developed by the Organisation for Economic Co-operation and Development (OECD). It requires crypto-asset service providers, like exchanges, brokers, and certain wallet providers, to collect and report customer information to tax authorities.  This information is then shared across jurisdictions under international agreements, similar to how the Common Reporting Standard (CRS) works for traditional financial accounts.

Implementation timelines vary by country.  The OECD released CARF in 2022, and many jurisdictions are now adopting legislation to enforce it, with reporting expected to begin in 2026 in several major economies (EU (DAC 8), the UK, etc.).

We will provide updates as your jurisdiction finalizes its rules.

CARF was introduced to address the fact that crypto transactions can cross borders easily and may not always be reported for tax purposes.
The OECD designed CARF to:

• Prevent tax evasion through crypto assets.
• Ensure that crypto activities are reported consistently worldwide.
• Align crypto reporting obligations with other international tax reporting regimes including CRS and FATCA.

CARF applies to:

• Crypto-Asset Service Providers (CASPs): including exchanges, brokers, dealers, and certain wallet or payment providers.
• Individual and institutional clients who use these services to trade, invest, or transfer crypto assets.

If you are our client, we may need to collect additional information (for example: tax residency(ies) and TIN(s)) and report certain transactions to tax authorities.

CARF covers a wide range of crypto assets, including:

• Cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
• Stablecoins.
• Certain NFTs (if used for investment or payment purposes).
• Tokenized real-world assets.

Under CARF, exchanges and other providers may be required to report:

• Customer information: Name, address, date of birth, jurisdiction of tax residence, and taxpayer identification number (TIN), an entity status, and in certain cases the controlling person(s) of an entity. 

Transaction data: Purchases, sales, exchanges, transfers, and certain payments made in crypto assets.

We do not report individual transactions. Instead, transactions for CARF reporting are aggregated based on the following principles: Core Aggregation Rules.

All transactions are aggregated by:

1. Crypto-Asset, and

2. Transaction Direction, i.e., whether the transaction represents an inward or outward movement of the relevant crypto-asset.

Aggregation is performed across the reporting period and under the three transaction groupings described below:

1. Exchanges Between Crypto-Assets and Fiat Currencies

Transactions involving exchanges between a crypto-asset and a fiat currency are aggregated by:

• Crypto-asset,

• Fiat currency,

• and Transaction direction (inward vs. outward from the perspective of the crypto-asset).

Example:

If an account includes the following activity:

• BTC purchased with USD

• BTC sold for USD

• SOL sold for USD

The aggregations would be reported as:

• Aggregate of all BTC purchased with USD (crypto-asset inward)

• Aggregate of all BTC sold for USD (crypto-asset outward)

• Aggregate of all SOL sold for USD (crypto-asset outward)

Each aggregation is reported separately.

2. Exchanges Between One or More Relevant Crypto-Assets

Transactions involving exchanges between crypto-assets are aggregated by:

• Crypto-asset pair, and

• Transaction direction (inward vs. outward for the relevant crypto-asset).

Example:

If an account includes:

• BTC purchased with ETH

• BTC sold for ETH

• SOL sold for BTC

The aggregations would be reported as:

• Aggregate of all BTC purchased with ETH (BTC inward)

• Aggregate of all BTC sold for ETH (BTC outward)

• Aggregate of all SOL sold for BTC (SOL outward)

Each crypto-pair and direction is aggregated and reported independently.

3. Transfers of Relevant Crypto-Assets

Crypto-asset transfers are aggregated by:

• Crypto-asset,

• Transfer direction (inward or outward), and

• Transfer category.

Transfer-in categories (examples):

• Airdrops

• Staking rewards

• Transfers from another exchange

Transfer-out categories (examples):

• Transfers to another exchange

• Other outbound transfers

We submit the required data to our local tax authority based on the exchange providing you with services, which then shares it with other countries’ tax authorities where you may be a tax resident.  

• CRS (Common Reporting Standard): covers bank accounts and traditional investments.
• FATCA (U.S. law): covers reporting of U.S. taxpayers’ financial accounts worldwide.
• CARF: specifically covers crypto assets.

CARF and CRS will work in parallel, with some integration to avoid duplication.

You may be asked to:

• Provide or update your tax residency details (via self-certification forms).
• Confirm your Taxpayer Identification Number (TIN).
• Keep your information current if you move jurisdictions or change your tax status.

No. CARF is a reporting framework, not a tax itself.  Your local tax authority will obtain the reported information and may compare this against information you have reported.

CARF reporting follows strict data protection and security protocols.  Your information is only shared with government authorities under established international agreements.  We do not share your personal data with third parties outside of legal obligations.