Crypto investors in forty-eight countries face expanded tax scrutiny this year as governments require crypto service providers to begin Crypto Wallet Data Collection ahead of the OECD’s Crypto-Asset Reporting Framework, which takes effect globally in 2027.
Governments across Europe, Asia and the Americas have begun implementing early data collection requirements tied to the Crypto-Asset Reporting Framework, or CARF, an international tax transparency standard developed by the Organization for Economic Cooperation and Development.
Although CARF formally comes into force in 2027, crypto service providers in participating jurisdictions have been required since Jan. 1 to start recording transaction data. These Crypto Wallet Data Collection rules apply to centralized exchanges, certain decentralized platforms, crypto ATMs, brokers and dealers.
The OECD said the early start is designed to ensure a smooth transition to automatic information exchange between tax authorities once CARF becomes operational. The framework aims to prevent individuals from hiding taxable income through offshore or cross-border crypto activity.
Countries Start Recording Transactions to Prepare for Global Data Sharing
The OECD said in a November update that many jurisdictions planning to exchange crypto data in 2027 already have legislation in place or are in the “final stages” of enforcing laws that compel service providers to collect CARF-related information.
Under the first phase, forty-eight jurisdictions will record transactions during 2026 for exchange beginning in 2027. A second group of twenty-seven jurisdictions will delay data sharing until 2028.
Australia, Canada, Mexico and Switzerland are among those in the later group. They have until Jan. 1, 2027, to begin mandatory Crypto Wallet Data Collection, according to OECD guidance.
The framework covers transactions involving crypto assets such as cryptocurrencies and stablecoins. It focuses on identifying users, transaction values and counterparties to ensure accurate tax reporting.
OECD Pushes CARF to Close Gaps in Crypto Tax Compliance
CARF is the result of years of pressure from major economies to address what officials describe as a growing blind spot in global tax enforcement.
G20 finance ministers began calling for stronger action on crypto tax evasion in 2021. By 2022, the OECD finalized the core rules of CARF after consultations with member states and industry stakeholders.
One of CARF’s primary goals is to help tax authorities verify that individuals and businesses meet their tax obligations regardless of where crypto transactions occur. The OECD has said the framework mirrors existing standards for bank account reporting but is tailored to the structure of digital assets.
Hong Kong, part of the second implementation group, said Tuesday it is seeking public input on how CARF and Crypto Wallet Data Collection will be implemented locally and how tax reporting standards may change. Officials linked the move to efforts to combat cross-border tax evasion.
Privacy Concerns Grow as Data Use May Extend Beyond Taxes
While CARF is formally limited to tax purposes, some industry observers warn the data could be used more broadly over time.
Crypto tax software firm TaxBit said in a November analysis that CARF information could provide authorities with “unprecedented access” to crypto ownership and identity data. The firm said such data may eventually help identify anonymous crypto holders or support investigations into financial crime.
TaxBit cautioned that the scope of data collection highlights the need for clear safeguards and transparency around how Crypto Wallet Data Collection data is stored and shared.
Supporters of CARF argue that stronger reporting standards are necessary as crypto adoption grows and governments seek to combat money laundering and illicit finance.
As countries move closer to full implementation in 2027, crypto investors are being urged by tax authorities and compliance firms to review their reporting obligations and ensure records are accurate.
