EU to track crypto transactions under new CARF rules starting 2026
Starting January 1st, 2026, the European Union will roll out the DAC8 directive, bringing the Crypto-Asset Reporting Framework (CARF) into force. Under these rules, cryptocurrency exchanges, brokers, and custodial service providers will be required to report user transaction data directly to tax authorities.
According to an update from the Organisation for Economic Co-operation and Development (OECD) on December 4th, 75 jurisdictions have already committed to adopting CARF.
What is CARF?
CARF is a global reporting standard created by the OECD at the request of the G20. In simple terms, it extends the existing Common Reporting Standard (CRS)—which covers traditional financial accounts—into the cryptocurrency world.
Under CARF, exchanges, brokers, and custodial wallet providers must report a wide range of crypto activities, including:
- crypto-to-fiat conversions
- trades between different crypto-assets
- transfers involving custodial wallets
Tax authorities will automatically exchange this information with the countries where users are tax residents.
“CARF is the next logical step in combating tax evasion,” said Max Gnatyshin, Head of Operations at Toobit in the CIS. “CRS already allows authorities to see foreign bank accounts, and now the same visibility is coming to cryptocurrencies. For compliant users, nothing really changes—but the era of ‘grey zones’ in crypto is ending.”
Who will be affected?
CARF applies to Reporting Crypto-Asset Service Providers, which include both companies and individuals offering crypto-related services. These encompass:
- centralized exchanges
- crypto brokers
- custodial wallet providers
- operators of trading platforms
- certain DeFi operators who retain protocol-level control
These providers must collect tax residency information from clients and report relevant transactions to local regulators. Those authorities will then forward the information to the tax offices of users’ home countries.
Implementation timeline
The rollout schedule differs by region. In the European Union, exchanges will begin gathering data on 1st of January, 2026, with the first international data exchanges planned for 2027.
Of the 75 jurisdictions that have endorsed CARF, 53 have already signed the CARF Multilateral Competent Authority Agreement (MCAA), which forms the legal basis for international data sharing.
Some Asia-Pacific countries, including Singapore, are taking a slower approach. They plan to implement CARF in 2027 and start sharing information in 2028—giving regulators extra time to adjust.
How CARF works alongside CRS 2.0
At the same time, the OECD has released an updated version of the Common Reporting Standard, known as CRS 2.0. The two standards are meant to work together:
- CRS 2.0 covers traditional financial accounts, electronic money, CBDCs, and indirect exposure to crypto via derivatives or investment funds.
- CARF focuses directly on crypto transactions and movements on an operational level.
The new rules also include safeguards to prevent double reporting. If a particular asset falls under both systems, CRS 2.0 takes precedence.
The regulatory push comes amid broader concerns. The IMF has previously warned that stablecoins pose potential risks to global financial stability—adding urgency to efforts aimed at improving oversight.
