The European Union will begin tracking cryptocurrency transactions under CARF starting in 2026

According to a Forklog report, the European Union will start implementing the Cryptocurrency Assets Reporting Framework (CARF) from January 1, 2026, under Directive DAC8. Cryptocurrency exchanges, brokers, and custody services will report user transactions to tax authorities. As of December 4, 75 jurisdictions have committed to implementing this standard according to a report by the Organisation for Economic Co-operation and Development (OECD). CARF was developed by the OECD at the initiative of the Group of Twenty (G20), and expands the current Common Reporting Standard (CRS) to include the cryptocurrency sector. It requires reporting entities to disclose exchanges of cryptocurrencies for traditional currencies (fiat), trading between cryptocurrencies, and transfers. Information will be automatically shared with tax authorities in the countries where users reside. The CARF framework applies to reporting service providers for cryptocurrency assets, including centralized trading platforms, cryptocurrency brokers, custody wallets, and some decentralized finance operators.