The CARF framework for global crypto tax transparency has officially launched, and offshore cryptocurrency tax evasion is nowhere to hide.

According to Coindesk, as the crypto asset reporting framework (CARF) led by the Organisation for Economic Co-operation and Development (OECD) officially launches in multiple jurisdictions, a global collaborative regulatory network aimed at ending the "era of offshore cryptocurrency tax evasion" has transitioned from legal texts to actual operation.

The core of this framework is to establish a unified global standard for crypto asset information reporting, requiring cryptocurrency trading platforms, brokers, and other institutions to automatically submit user account and transaction data to tax authorities in various countries.

At the same time, regulatory authorities can significantly enhance their ability to track and identify unreported crypto assets by combining fiat currency inflow and outflow records, on-chain data analysis, and internal institutional ledgers.

There is a general consensus in the industry that this systemic reform has put large investors holding unreported offshore crypto assets at unprecedented compliance and potential criminal risk. As a result, some investors have taken the initiative to voluntarily disclose in hopes of obtaining more lenient treatment.

Currently, over 70 countries have pledged to adopt and promote CARF, with relevant transaction data expected to begin systematic collection starting in 2026, and the first round of large-scale cross-border tax information exchange to commence in 2027. This also means that the global tax compliance regulation for crypto assets has officially entered a new phase of continuous tightening and high transparency.

Overall, with the implementation of the crypto asset reporting framework (CARF) worldwide, the era when assets could be hidden behind offshore accounts or complex technologies to evade regulation is gone for good.

For crypto asset holders, passively waiting or harboring illusions is equivalent to bearing enormous legal and financial risks. In this context, only by actively acting within the framework of rules and conducting compliant reporting can one build a sustainable long-term security barrier for personal wealth.

#CARF #Crypto Tax Compliance