Crypto Tax Data To Be Collected In 48 Counties Ahead Of Carf 2027

Crypto service providers in Crypto-Asset Reporting Framework-participating jurisdictions will start ramping up transaction data collection and begin sharing information in 2027.

Crypto investors across 48 countries will start to have their crypto wallet transaction data recorded for tax purposes this year, as the long-awaited Crypto-Asset Reporting Framework rolls out globally.

CARF, an international tax transparency framework developed by the OECD, officially goes into effect in 2027.

However, as of Jan. 1, crypto service providers in participating jurisdictions — including centralized and certain decentralized exchanges, crypto ATMs, and brokers and dealers — are already required to begin collecting the necessary transaction data.

It's a signal that countries are moving toward more transparency to fight tax evasion and money laundering.

The OECD said in an update in November that a growing number of jurisdictions that have committed to begin exchanging information under the framework CARF in 2027 already have the required legislation in place to mandate crypto service providers to collect CARF-related data, or are in the “final stages” of enforcing those laws.

One of the main objectives of CARF is to help tax authorities ensure that taxpayers meet their tax obligations, regardless of where they conduct crypto transactions worldwide.

G20 Finance Ministers had been pushing for more action on this since 2021, and by 2022, the OECD had finalized the core rules for CARF.

While 48 countries are part of the first batch and are set to begin recording transactions in 2026 for data exchanges starting in 2027, another 27 jurisdictions will not begin sharing information until 2028.

The second group, which includes Australia, Canada, Mexico and Switzerland, has until Jan. 1, 2027, to start collecting the required data.

Source: CoinTelegraph