The Organisation for Economic Co-operation and Development (OECD) has launched a global initiative that could fundamentally reshape the crypto landscape. Known as the Crypto-Asset Reporting Framework (CARF), it aims to make crypto assets transparent and resistant to fraud, money laundering, and tax evasion.

From anonymity to accountability

As cryptocurrencies surged in popularity over recent years, tax authorities worldwide faced a growing challenge. Systems like the Common Reporting Standard (CRS) allowed governments to track traditional financial transactions — but crypto was happening far beyond this framework.

People could buy, sell, and trade digital assets through exchanges and wallet providers without their home tax authorities having any insight. Recognizing this growing blind spot, the G20 tasked the OECD with creating a solution. The result is CARF, essentially the crypto counterpart of existing banking transparency rules.

How CARF works

CARF requires crypto-asset service providers (CASPs) — such as exchanges and wallet platforms — to collect customer data and report it to local tax authorities. These authorities will then share the information with the users’ home countries, much like how banks already exchange financial data internationally.

The primary goal is simple: to ensure the crypto market doesn’t become a tool for concealing taxable income or cross-border transactions, safeguarding years of progress in global financial transparency.

Global adoption on the rise

By 2025, more than 60 countries, including all G7 members and most G20 economies, had already pledged to implement CARF. Over 50 jurisdictions are preparing to exchange their first sets of data by 2027, with another 15 expected to join in 2028.

Recently, Finland announced it would adopt CARF starting in 2026, becoming the first EU member state to do so. Alongside CARF, the EU continues rolling out MiCA (Markets in Crypto-Assets) — another framework often compared to CARF, though with a slightly different focus.

While CARF targets tax transparency, MiCA is centered on consumer protection, setting licensing requirements for CASPs and introducing specific rules for stablecoins. Together, they form complementary pillars of crypto regulation — one ensuring transparency, the other boosting trust and accountability.

A more transparent future

By 2030, CARF could help transform crypto into a transparent, accountable asset class. In the best-case scenario, it will mainstream crypto, reduce illicit activity, and unify global rules while still enabling innovation.

The risk? Overregulation could drive some activity underground. The likely outcome, however, lies somewhere in between: more transparency, fewer tax havens, and a crypto ecosystem that increasingly mirrors traditional finance — but with digital DNA.

Sources:

https://www.thomsonreuters.com/en-us/posts/corporates/carf-global-cryptocurrency/

https://news.bloombergtax.com/daily-tax-report-international/finland-readies-crypto-reporting-amid-staggered-rollout-concerns

https://www.oecd.org/content/dam/oecd/en/networks/global-forum-tax-transparency/commitments-carf.pdf