CARF
CARF is an OECD framework for tax reporting and automatic exchange of information about crypto-asset transactions.
CARF stands for Crypto-Asset Reporting Framework, a global standard developed by the OECD to help tax authorities receive information about crypto-asset activity. It requires certain crypto service providers, such as exchanges, brokers, and some wallet or trading platforms, to collect user identity details and report relevant transactions involving crypto-assets. The aim is to reduce tax evasion and make crypto reporting more consistent across countries.
In practice, CARF works somewhat like existing bank account information-sharing rules, but adapted for crypto. For example, if a user in one country trades tokens on an exchange based in another country, the exchange may need to report the user’s identity and transaction data to its local tax authority, which can then share it with the user’s home tax authority. CARF matters because it increases transparency for cross-border crypto activity and may affect how platforms verify customers, keep records, and provide tax-related information.
Other terms in Regulation & Tax
AML
Anti-money laundering rules and processes aim to stop criminals from using financial systems, including crypto platforms, to hide or move illicit funds.
BitLicense
A state license required for many virtual currency businesses that serve customers in New York.
Crypto Tax Loss Harvesting
A tax strategy where investors sell crypto at a loss to realize a capital loss that may offset taxable gains, subject to local rules.
FATF
The Financial Action Task Force is a global standard-setter for anti-money-laundering and counter-terrorist-financing rules.