48 countries launch a unified cryptocurrency tax control system

Starting January 1, 2026, the Crypto Asset Reporting Framework (CARF) will come into effect, which will significantly impact the tax transparency of digital assets in 48 countries. At the same time, significant changes in the legal regulation of cryptocurrencies are occurring in several Central Asian countries.

CARF: A New Era of Tax Control

The Organisation for Economic Co-operation and Development (OECD) has announced the launch of an automatic exchange of tax information system for crypto assets. Now, cryptocurrency service providers are required to collect detailed data about their users and their transactions for submission to tax authorities.

The first report will be presented in 2027, covering the year 2026. After that, automatic data exchange will begin between the tax services of participating countries.

In addition to CARF, the European Union has the DAC8 directive, which requires crypto platforms to collect data on transactions of users from the EU starting January 1, with the first reporting to be submitted between January and September 2027.

Tightening Control in the UK

The UK tax authority (HMRC) has confirmed that CARF will be implemented starting January 1, 2026. British cryptocurrency service providers will need to collect tax information and conduct annual audits of their users.

It is important to note that the first report in the UK must be submitted between January 1 and May 31, 2027, and thereafter reports will be submitted by May 31 each year for the previous calendar year.

The system covers all types of cryptocurrency transactions, including exchanges for fiat money, transactions between digital assets, transfers to wallets, and even some NFTs.

Impact on the Crypto Market

The new rules will affect key aspects of the crypto industry. The automated exchange of tax information between multiple countries will make it nearly impossible to hide income from digital asset transactions.

Platforms will be forced to implement strict user identification procedures and closely monitor all transactions, which means the end of the anonymity that has long been an attractive feature of cryptocurrencies.

The global synchronization of tax regulation marks a transition to a more institutional stage of industry development, creating more stable conditions for business but requiring significant investments in regulatory compliance.

Situation Analysis

From a data analysis perspective, the current situation resembles the introduction of automatic exchange of banking information in the 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 data shows that the stricter the regulation becomes, the faster evasion technologies develop. Decentralized exchanges, direct wallet-to-wallet exchanges, and anonymous coins may gain new momentum for growth. 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 bounds of regulation or slip into the shadows of the digital economy?

Source: hashtelegraph.com