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CARF Tax Rules Go Live on Jan. 1: What Crypto Users and Exchanges Need to Know

On January 1 2026 the OECD’s Crypto‑Asset Reporting Framework (CARF) will become operational in 48 jurisdictions, including the UK and EU. The rule obliges crypto exchanges to collect detailed tax‑residency data, verify customer information and annually report balances and transactions to domestic tax authorities, which will then exchange the data internationally. For exchanges this means overhauling KYC, AML and reporting systems, while retail investors face a sharp rise in audit risk as tax agencies receive machine‑readable exchange data. Early compliance can become a competitive differentiator, whereas delays may trigger regulatory and reputational fallout.