The U.K. and 47 countries enforce new CARF rules for crypto tax reporting. Exchanges must collect users’ tax info and report transactions. Goal is to cut undeclared gains and boost transparency. 2026 signals a pivotal year for global crypto taxation, shifting towards tracking digital assets like traditional finances.

CARF tackles unreported crypto profits, requires detailed user info collection, and annual transaction reporting. Data will be shared among participating nations. U.K. among first adopters, with cross-border data exchange starting in 2027. 75 countries pledged to implement CARF, with the U.S. following in 2028.

CARF targets all crypto assets, including NFTs and DeFi with intermediaries. Individuals, especially high-net-worth traders, will face stricter scrutiny. Unreported gains might lead to audits, back taxes, and penalties. The U.K. anticipates recovering £500 million yearly from evasions. Compliance may prompt sell-offs initially but could foster long-term stability.

CARF mandates KYC and data sharing, deterring privacy-focused users. Exchanges and service providers must implement costly systems for compliance. Higher fees could result, potentially leading to industry consolidation. Platforms that adapt early may gain a competitive edge, signaling regulatory readiness and reliability.

CARF could boost parts of DeFi without custodial middlemen. Regulators hint at future updates to close any gaps. Reactions in the crypto community vary. Some see CARF as a necessity for mainstream acceptance, while others view it as a compromise of privacy. Governments shift to view digital assets as a mature sector under global regulation.

Read more at Yahoo Finance: UK and Dozens Others To Enforce Strict Reporting Rules