Crypto platforms adjusting to new regulations for tax transparency and real-time reporting

More than 60 countries, including the UK and EU, have signed on to CARF (Crypto-Asset Reporting Framework) for tax transparency in 2027. Crypto platforms are adjusting to the new regulations, which require real-time tracking and reporting of transactions, impacting non-custodial services and DEXs. Jurisdictions must pass legislation before reporting begins in 2026.

CARF marks the end of easy, anonymous crypto transactions, requiring platforms to report user activity to tax authorities. While this erodes privacy, it enhances legitimacy and attracts institutional investors. Everyday users will benefit from simplified tax reporting, but platforms may increase fees initially to cover compliance costs.

CARF brings structure to the crypto market, addressing global tax evasion and improving industry legitimacy. While some freedoms will be restricted, the framework encourages professionalization and investor confidence. Platforms not compliant may face restrictions or exit markets, while early adopters gain a competitive edge through legal clarity and user protections.

Read more at Cointelegraph: Crypto’s Path To Legitimacy Runs Through The CARF Regulation