Unexpectedly, the wind of tax CRS has blown into the cryptocurrency circle!

Recently, some media reported that countries like the UK, Japan, and Singapore require exchanges to synchronize user information with the global tax CARF (Cryptocurrency Tax Synchronization Framework).

Once this news broke, many people panicked! What exactly is this CARF?

In simple terms, CARF is a "global tax radar." You've definitely heard of CRS, right? That's to check how much money you have hidden in overseas banks; while CARF is its "twin brother," specifically used to investigate cryptocurrency assets.

In the past, the tax authorities might not have seen your funds in Binance or OKEx; but from now on, as long as you are in a CARF participating country, tax authorities will automatically exchange data with each other.

To put it more bluntly: funds in the cryptocurrency circle are no longer difficult to trace, and in the future, you might have to pay taxes just like trading stocks.

What can tax authorities see through CARF?

Don't think they only look at how much you have left at the end of the year. CARF is much stricter than CRS; it wants to see the entire process! How much you bought with U, or how you exchanged that for Ether.

Which wallet you withdrew to, or which wallet you deposited from; as long as you have moved in the exchange, traces may be recorded.

The wind of CARF cannot be stopped, and 2027 will be a watershed.

Although users from the mainland can still catch their breath for now, the era of "making money quietly without being monitored" is slowly coming to an end.

Brothers, compliance is the trend, and in the future, when you make money, you might really have to consider giving a portion to the tax authorities!