What Every Crypto Stakeholder Must Know - Understanding CARF in 2027
- Admin Blog & Media
- 1 day ago
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At its meeting on 26 November 2025, the Swiss Federal Council approved the amendment of the Ordinance on the International Automatic Exchange of Information in Tax Matters (AEOI Ordinance). The ordinance contains implementing provisions on amending the Federal Act on the International Automatic Exchange of Information in Tax Matters (AEOIA). Both pieces of legislation are due to come into force on 1 January 2026. More on the Swiss State Secretariat for International Finance SIF
The global tax and compliance landscape for crypto-assets has undergone a landmark shift with the rollout of the Crypto-Asset Reporting Framework (CARF) developed by the Organisation for Economic Co-operation and Development (OECD). As one of the most consequential regulatory standards in the digital asset space, CARF represents a coordinated international effort to improve transparency of crypto transactions and strengthen global tax enforcement while mitigating risks such as tax evasion and illicit financial activity. We provide a comprehensive overview of CARF in 2027 - including its purpose, scope, implementation timeline, reporting obligations, and practical implications for market participants.
What Is CARF 2027?
The Crypto-Asset Reporting Framework (CARF) is an internationally agreed standard aimed at facilitating the automatic exchange of tax-related information on crypto-asset transactions between participating jurisdictions. Initially conceptualised and negotiated under a G20 mandate, CARF was formally adopted by the OECD and endorsed by a growing number of countries, with implementation rolling out in phases, culminating in the first scheduled exchanges of information in 2027. OECD+1
CARF functions similarly to the Common Reporting Standard (CRS) — which governs financial account information — but is tailored specifically to the unique attributes of crypto-assets. It focuses on transaction-level transparency rather than account balances, and extends reporting obligations to include a wider spectrum of digital asset activity.
Why CARF Was Created?
The rapid growth of crypto-assets and decentralised finance (DeFi) presented a challenge: conventional tax reporting regimes were insufficient to capture cross-border transactions and evolving business models. CARF was developed to:
Enhance global tax transparency
Close gaps exploited for tax evasion
Standardise reporting obligations across jurisdictions
Mitigate illicit use of crypto for money laundering or sanctions circumvention Walkers+1
CARF’s emphasis on automatic information exchange strengthens international cooperation by ensuring tax authorities can track and verify crypto-related income or gains that were historically difficult to monitor.
Who Must Comply? Reporting Crypto-Asset Service Providers (RCASPs)
Under CARF, the principal entities with reporting obligations are Reporting Crypto-Asset Service Providers (RCASPs) — defined as individuals or organisations that, as a business, facilitate or effectuate crypto-asset transactions on behalf of customers. These can include:
Centralised crypto exchanges
Brokers, dealers, and market makers
Crypto-asset intermediaries
Operators of crypto ATMs
Certain decentralised platforms where a business-like service is offered
RCASPs are required to collect customer data, including tax residency and identification information, and to conduct due diligence to determine which customers and transactions are reportable under CARF rules.
What Transactions Are Reported?
CARF 2027 outlines three primary categories of reportable activity:
Exchanges between crypto-assets and fiat currency
Exchanges between different crypto-assets
Transfers of crypto-assets, including where crypto is used as payment or transferred to unhosted wallets Wikipedia
Unlike traditional financial reporting, CARF captures detailed transaction-level data rather than solely account holdings, reflecting the dynamic nature of digital-asset markets.
For entities subject to CARF, the compliance burden includes:
Registering as a reporting entity with local tax authorities
Collecting accurate customer tax data
Implementing robust due diligence processes
Reporting annually in the specified XML format
Maintaining systems capable of capturing relevant transaction details for global exchange
Given CARF’s scope and depth, many organisations have begun upgrading internal controls, data infrastructure, and compliance frameworks well ahead of reporting deadlines.
Within the European Union, CARF’s core principles are reflected in the EU’s Directive on Administrative Cooperation 8 (DAC8), which amends existing tax cooperation laws to align domestic reporting requirements with CARF standards. DAC8 requires EU member states to obtain similar transactional data from RCASPs and exchange it with the relevant tax authorities within set timelines.
Final Thoughts
By 2027, CARF will become a foundational component of international crypto-asset oversight. Its automatic exchange mechanisms and broad participation reflect a global consensus that digital-asset transactions must be transparent and accountable. Organisations operating in the crypto sphere - from exchanges to brokers and payment providers — must prioritise CARF compliance as part of their core regulatory strategy.