- Forty-eight countries have already begun collecting data on crypto activities in preparation for the enforcement of the CARF standards in 2027.
- A 2024 paper suggests that governments miss out on $200 to $1,087 in sovereign revenue per non-reporting crypto user.
Crypto service providers in 48 jurisdictions, including the UK, Germany, France, Italy, and Japan, have commenced data collection under the Crypto-Asset Reporting Framework (CARF). This comes ahead of the enforcement of the global tax reporting standards in 2027.
Crypto Data Collection Starts in 48 Countries
Mathias Cormann, Secretary-General of the Organization for Economic Co-operation and Development (OECD), confirmed as early as November 2025 that the 48 countries due to adopt the CARF regime in 2027 have pledged to work on measures to ensure the efficient data collection from entities providing crypto-related services. As a result, crypto exchanges, brokers, crypto ATMs, and decentralized platforms in the covered jurisdictions have already begun recording user transactions, wallet activities, and trading histories.
CARF is a key component of OECD’s updated International Standards for Automatic Exchange of Information in Tax Matters. The framework adopted in 2023 under a G20 mandate provides for the automatic exchange of tax-relevant information in crypto assets.
The OECD crafted the new standards in response to the rapid adoption of crypto worldwide. It argued that due to their decentralized nature, these digital assets can be issued and transferred without the intervention of traditional financial intermediaries, such as banks or investment firms, which have historically acted as the “gatekeepers” for tax reporting. Hence, CARF aims to bridge the transparency gap lacking in the system.
Cormann highlighted that the proper implementation of the rules for coordinated international action on crypto assets is a vital factor for governments to curb tax evasion through greater transparency and exchange of information.
Serious Concerns Over Crypto Tax Evasion
According to a BFI Working Paper, “crypto tax noncompliance is pervasive.” The issue permeates not only among high-income individuals but also among small crypto investors.
In a survey the researchers conducted in Norway involving crypto holders, 88% of respondents admitted they had omitted the declaration of their crypto investments from their tax returns. It estimates that this trend causes governments to miss out between $200 and $1,087 in taxes per non-compliant individual annually.
While the numbers appear modest when taken individually, the aggregate tax gap across millions of users worldwide would amount to billions of dollars in unrealized sovereign revenue.
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