Crypto Users: Get Ready for Big Changes in 2026

Key Changes Under CARF

Starting January 1, 2026, crypto users in 48 jurisdictions, including the UK and EU, will experience the first real effects of the OECD's Crypto-Asset Reporting Framework (CARF). This framework introduces stricter reporting requirements for crypto exchanges and platforms, including:

• Collection of detailed user information
• Verification of tax residency
• Annual reporting of balances and transactions
• Cross-border data sharing among tax authorities

Why This Matters

This regulatory shift marks a major change for both crypto businesses and users:

• Stricter Compliance: Crypto exchanges must adapt quickly to avoid regulatory and reputational risks.
• Global Tax Enforcement: Users can no longer assume that trading on overseas platforms will remain hidden from tax agencies.
• Enhanced Audits: Tax authorities will receive standardized data, making it easier to detect mismatches and enforce existing tax rules.

Impact on Crypto Exchanges

For exchanges, CARF is not just a minor update—it requires:

• Integration into existing processes
• Redesigning onboarding to capture tax residency data
• Upgrading reporting systems
• New governance frameworks, staff training, and improved coordination

Impact on Users

Users should expect:

• Increased audits as tax authorities gain better access to transaction data.
• No new taxes, but existing rules will be easier to enforce.
• Common issues include offshore exchange activity, small disposals, and misreported DeFi or NFT transactions.

Advice for Users:

• Address any unresolved tax issues now while voluntary disclosure is still an option.