Recently, news of an investigation into cryptocurrency practitioners in Hangzhou has drawn attention in the crypto circle. Although the official has refuted the rumors, this dynamic sends a clear signal: the state is accelerating the regulation of crypto assets. Combined with cutting-edge information from Singapore, a new policy called CARF may become an important turning point for the compliance of crypto assets—similar to the CRS (Common Reporting Standard) system, which is expected to require centralized exchanges, licensed institutions, and others to fulfill reporting obligations starting in 2027, relaying information about users' held crypto assets and currency to relevant authorities.
The development trajectory of the cryptocurrency industry has always followed the logic of 'from wild growth to standardized regulation.'
The state's investigation and eventual regulation of crypto assets and cryptocurrencies is only a matter of time. What we can do is to plan our tax identities in advance and make them compliant. Many industries at the early stages of development lack legal basis or defined regulations. As they continue to grow, when they reach a certain market scale, they will inevitably transition from being unregulated to being legally compliant.
In the early stages of market growth, the industry often exists in a legal gray area, but as the scale expands to a certain extent, compliance becomes an inevitable trend. Nowadays, many 'old crypto circle' figures have made early arrangements: optimizing tax planning, establishing cryptocurrency trusts, and setting up crypto funds to achieve goals such as tax optimization, identity isolation, family inheritance, and marital property allocation.
The potential impact of this policy cannot be ignored. For ordinary investors, the holding information of crypto assets will fall under regulatory scrutiny, meaning that the previously 'anonymized' investment model may come to an end; for industry institutions, compliance costs will increase, and they will need to improve internal reporting mechanisms in advance. However, in the long run, regulation is not 'suppression,' but rather a push towards standardization in the industry. As lawyers say, the compliance of crypto assets is an irreversible trend, and only early planning can address future regulatory requirements.
If regulation turns out to be a good thing for ordinary people.
