Crypto-Asset Reporting Framework (CARF)
- Issuing authority
- Organisation for Economic Co-operation and Development (OECD)
- Effective date
- In the European Union, CARF reporting rules apply from 1 January 2026 through DAC8. The first automatic exchange of information is expected by 30 September 2027.
- Scope
- Participating jurisdictions implementing CARF
Key requirements
A global tax-transparency framework for crypto but with major AML implications. From 1 January 2026, crypto platforms in the EU and UK must automatically report user account details and transaction data to tax authorities. The EU implements CARF through DAC8 the Eighth Directive on Administrative Cooperation. Countries will start exchanging information by 30 September 2027.
Quick Summary
The Crypto-Asset Reporting Framework (CARF) is an international framework developed by the OECD to improve tax transparency for cryptoassets. It requires crypto service providers in participating jurisdictions to collect and report information about customers and certain crypto transactions to tax authorities. In the European Union, CARF is implemented through the Eighth Directive on Administrative Cooperation (DAC8)
What is it?
Crypto equivalent of international tax reporting rules that already exist for bank accounts. It helps tax authorities identify people who may be hiding income or assets using cryptoassets by requiring certain crypto service providers to report customer information and reportable transactions.
Who does it apply to?
- Crypto Asset Service Providers (CASPs)
- Crypto exchanges
- Crypto brokers
- Other reporting cryptoasset service providers covered by CARF
- Tax authorities in participating jurisdictions
Why does it matter?
Although CARF is a tax reporting framework, it has important implications for financial crime compliance. It increases transparency in the crypto sector, makes it harder to hide assets across borders, and supports cooperation between tax authorities around the world.
What should firms do?
- Determine whether they qualify as a reporting cryptoasset service provider.
- Collect and verify customer information required under CARF.
- Review systems for recording and reporting reportable crypto transactions.
- Prepare for reporting obligations under applicable national legislation.
- Monitor guidance issued by national tax authorities.
AboutAML Breakdown
CARF is designed to improve tax transparency, not to replace AML rules. However, it still matters for AML professionals because many of the same customer identification and record-keeping processes used for AML compliance also support CARF reporting. By increasing transparency and information sharing between tax authorities, CARF makes it more difficult for individuals to hide cryptoassets or move funds across borders without being detected. The European Union has implemented CARF through DAC8, creating a common reporting framework across EU Member States. Other participating jurisdictions, including the UK, are implementing CARF through their own domestic legislation rather than through DAC8.