CARF tax rules go live on Jan. 1: What crypto users and exchanges need to know

Starting January 1, 2026, CARF (Crypto Asset Reporting Framework) tax rules will come into effect in 48 jurisdictions, including the UK and EU. This new regulation will compel crypto platforms to collect users' tax residency information and report transactions. This change poses significant implications for cryptocurrency users. As tax authorities demand stricter reporting on crypto asset transactions, investors need to reassess their tax positions. Particularly, under compliance with tax laws in many countries can result in penalties or additional tax liabilities if ignored. Furthermore, platform operators will be responsible for establishing new management frameworks to adhere to these rules. Overall, the implementation of CARF represents a broader trend towards demanding greater transparency and regulation in the cryptocurrency market, thus profoundly affecting the strategies of both investors and platforms.