Starting January 1, 2026, a new Reporting System for Crypto Assets (CARF) will come into effect, fundamentally changing tax transparency in 48 countries around the world. At the same time, important changes in legislation regarding cryptocurrencies are also taking place in Central Asia.
CARF: A New Era of Tax Control
The Organisation for Economic Co-operation and Development (OECD) has officially announced the implementation of a system for the automatic exchange of tax information on crypto assets. Now, cryptocurrency service providers are required to collect detailed information about their users and their transactions for subsequent submission to tax authorities.
The first reports will be submitted in 2027 for the 2026 financial year, paving the way for automatic data exchange between the tax services of participating countries.
Within the European Union, the DAC8 directive also requires crypto platforms to collect data on transactions of EU resident users starting January 1, with reporting to be submitted between January and September 2027.
Tightening Control in the UK
The UK tax authority (HMRC) has confirmed that CARF will take effect on January 1, 2026. British cryptocurrency service providers will be required to collect tax information annually and conduct thorough user verification.
It is important to note that the first report must be submitted between January 1 and May 31, 2027. Subsequently, reports will need to be submitted by May 31 of each year for the previous calendar year.
The system covers all types of cryptocurrency transactions, including exchanges of cryptocurrencies for fiat money, exchanges between different digital assets, transfers to wallets, and even some NFTs.
Consequences for the Crypto Market
The new regulations will affect all key aspects of the crypto industry. The automatic exchange of tax information between multiple countries will make it nearly impossible to hide income from transactions with digital assets.
Platforms will have to implement strict user identification procedures and closely monitor all transactions. This, in turn, will effectively end the anonymity that has long been one of the main attractive features of cryptocurrencies.
The global synchronization of tax regulation marks a transition to a more institutional phase in the development of the industry. This will create more stable conditions for business but will require significant investments in the appropriate systems.
Situation Analysis
From a data analysis perspective, the current situation resembles the implementation of automatic banking information exchange in the early 2010s. At that time, the offshore industry did not disappear but transformed, with new jurisdictions and schemes emerging. CARF covers centralized platforms, while decentralized protocols remain in a gray area.
Historical examples show that with the tightening of regulation, more evasion technologies emerge. Decentralized exchanges, direct wallet-to-wallet exchanges, and anonymous cryptocurrencies may gain new momentum for development. The paradox is that attempts to strengthen control often lead to the creation of more sophisticated tools for concealing transactions. Will the crypto industry remain within the framework of regulation or will it move into the shadows of the digital economy?
Source: hashtelegraph.com
