Crypto tax data to be collected in 48 counties ahead of CARF 2027

Crypto service providers are set to ramp up transaction data collection in preparation for the Crypto-Asset Reporting Framework (CARF) in 2027, involving 48 jurisdictions. This movement signifies a major step in the enforcement of regulations surrounding cryptocurrencies. Each provider will be obligated to share transaction information with appropriate authorities. This initiative is expected to enhance the transparency of crypto transactions and improve tax revenue. As tax authorities plan to implement taxes on crypto-related transactions and profits, investors and traders will need to consider tax implications more seriously. The introduction of CARF will likely impact the industry, and market participants must monitor the progress of these regulatory efforts as they could lead to new restrictions and rules affecting trading behavior.