Finland implements new cryptocurrency reporting standard

A strengthened international standard for exchanging data on income from cryptocurrency transactions will come into effect in Finland in January. The Finnish Tax Administration (VERO) warns that the new rules could affect approximately 450,000 residents. This step is a response to the rapid growth of the cryptocurrency sector and the significant gap between citizens’ actual income and the income they actually report.

By the end of 2024, only 18,000 people declared income from the sale of digital assets, bringing the state approximately €68 million. However, only about 10% of these reports accurately reported transactions with the most popular cryptocurrencies—Bitcoin, Ethereum, and other virtual assets. VERO notes that up to 100,000 citizens completely ignored the requirement to report their income from cryptocurrency transactions, indicating the scale of undeclared turnover.

This situation is expected to change in January 2026, when the new OECD standard, CARF (Crypto-Asset Reporting Framework), comes into effect. It will supplement the existing international CRS system and require crypto exchanges, wallet providers, and other companies working with virtual assets to submit detailed transaction data to tax authorities. This will include not only purchases and sales, but also intermediate transactions, including exchanges for stablecoins like USDT.

The collected information will be automatically sent to tax authorities in more than 70 countries. This will allow users to pre-fill their declarations and make the reporting process much simpler, while significantly complicating attempts to conceal profits. Under CARF rules, VERO will be able to request data from both local and international platforms. Tax evasion will result in higher tax rates and even criminal prosecution.

Meanwhile, Finland continues to occupy a unique place in the crypto ecosystem. Local media previously reported that mining companies have begun using heat from their equipment to heat homes and small villages, highlighting the growing integration of crypto technologies into everyday life.