Global Implementation of the CARF Standard: New Requirements for Crypto Services

What is the CARF standard and why is it being introduced?

Starting in 2024, crypto services in 48 countries are required to begin collecting and reporting information on users’ cryptocurrency transactions. This is part of the implementation of the Crypto-Asset Reporting Framework (CARF), developed by the Organisation for Economic Co-operation and Development (OECD). The main goal of the standard is to increase the transparency of digital asset transactions, combat tax evasion, and increase tax revenues for national budgets.

The OECD emphasizes that the international exchange of such data will allow tax authorities to more effectively track crypto investors’ income and ensure tax compliance at the cross-border level.

Who is affected by the new requirements?

The CARF standard applies to virtual asset service providers (VASPs). These include cryptocurrency exchanges, custodial services, crypto wallet providers, crypto ATMs, brokers, and other platforms that support digital asset transactions. Such companies are required to collect and transmit to tax authorities information on the sale, exchange, and transfer of cryptocurrency, as well as user data.

Effectively, the cryptosphere is being treated as equivalent to traditional financial institutions in terms of tax reporting.

International Data Exchange Schedule

Starting in 2027, tax authorities in all European Union countries, as well as the United Kingdom and Kazakhstan, will begin automatically exchanging information received from crypto services.

Azerbaijan, Mexico, Mongolia, Singapore, Switzerland, Thailand, the United Arab Emirates, and Hong Kong plan to join the initiative starting in 2028.
The United States intends to participate in the data exchange system starting in 2029.

Thus, CARF is gradually forming a global system of tax control over cryptocurrency transactions.

Countries outside the CARF system

A number of countries—Argentina, El Salvador, Georgia, India, and Vietnam—have not yet committed to implementing the CARF standard, despite the high level of cryptocurrency usage. El Salvador stands out, recognizing Bitcoin as legal tender and building public policy on the principles of financial independence from the OECD and the IMF.

Russia is not participating in CARF implementation because it is not a member of the OECD. Due to international sanctions, participating countries do not plan to report crypto transaction data to the Russian Federal Tax Service. A similar situation persists for other sanctioned countries.

Strengthening Control as a Global Trend

Further confirmation of the global trend toward tighter regulation is Brazil’s position: in December, the country’s tax authority announced stricter reporting requirements for crypto assets amid a surge in transaction volume to $6-8 billion per month. This demonstrates that CARF is only part of a broader trend toward integrating the crypto market into the traditional financial and tax system.