CARF & DAC8

What is CARF? 

Developed by the OECD, the Crypto-Asset Reporting Framework (CARF) is the global standard for reporting crypto-asset transactions and automating information exchange between participating jurisdictions. Designed to complement the Common Reporting Standard (CRS), CARF closes the regulatory gap surrounding digital assets.

The framework establishes precise rules governing reporting intermediaries, covered asset classes, and trackable transactions. "Relevant Crypto-Assets" are defined broadly under CARF to encompass cryptocurrencies, stablecoins, tradeable Non-Fungible Tokens (NFTs), and crypto-linked derivatives.

What is DAC8?

DAC8 implements the OECD’s Crypto-Asset Reporting Framework (CARF) in the EU, mandating automatic information exchange for crypto-asset transactions starting January 1, 2026. This directive requires crypto service providers, regardless of their location, to report user data for EU residents to combat tax evasion and close transparency gaps.

Operating alongside MiCA, DAC8 updates DAC2 and CRS rules to cover a broad range of digital assets, including CBDCs, e-money, and ETFs, creating a standardized "CRS 2.0" framework.

What is reportable under CARF & DAC8?  

The regulations target a broad scope of digital assets and specific types of transactions, including: 

• Covered assets: This includes crypto-assets that can be held and transferred in a decentralized manner without the intervention of traditional financial intermediaries, as well as any asset classes relying on similar technology that may emerge in the future. 
• Exchanges between crypto-assets and fiat currencies: Any transaction swapping digital assets for traditional government-issued currencies.
• Exchanges between crypto-assets: Trades made from one cryptocurrency to another (e.g., swapping Bitcoin for Ethereum or stablecoins). 
• Transfers of crypto-assets: Moving digital assets between platforms or transferring them out to external, un-hosted wallets. 

Who is impacted by CARF & DAC8?  

CARF and DAC8 significantly impact various entities within the global financial landscape, primarily targeting:

• Crypto-Asset Service Providers (CASPs): Centralized exchanges, custodial wallet providers, and brokers dealing with crypto-assets face the heaviest regulations. As key intermediaries, these platforms bear the legal responsibility for client data collection and regulatory reporting. 
• Traditional financial institutions: Banks, investment funds, and other traditional financial entities that offer digital asset custody, crypto investment products, or electronic money services are also heavily impacted. 
• Exchange and transfer businesses: Any entity providing commercial services to exchange crypto-assets for other crypto-assets, or for fiat currencies, must apply strict due diligence procedures to identify their customers. They are required to report the aggregate values of all exchanges and transfers for these customers on an annual basis

When do CARF and DAC8 take effect? 

• CARF: The OECD framework went live on January 1, 2026, for the initial wave of committed jurisdictions, which are currently collecting transactional data. This group includes the entire European Union (implementing via the DAC8 directive), the United Kingdom, Canada, South Korea and Japan. First reports to domestic tax authorities are due in 2027, with cross-border exchanges following shortly after.
  
  A number of additional jurisdictions, including Switzerland, Singapore, the United Arab Emirates, Hong Kong and Turkey, are targeting first exchanges in 2028. The US has committed to CARF exchanges starting in 2029.
  
  Jurisdictions committed to implement the Crypto-Asset Reporting Framework (CARF) - Last update: 23 June 2026.
   
• DAC8 - DAC8 directive has been fully adopted. All 27 EU member states were required to transpose DAC8 into national law by December 31, 2025, with provisions applying from January 1, 2026.
  
  Data collection obligations under DAC8 applied from January 1, 2026, with the first reports due to national authorities between January 1 and September 30, 2027. Penalties for non-compliance are determined by each EU member state through national implementing legislation.

Prepare for the next phase of digital asset reporting. Download our latest e-book to explore the regulatory impact and learn how to build a cohesive, scalable, and resilient reporting architecture.

How do CRS 2.0, CARF, and DAC8 intersect to shape global tax transparency?

From a strategic business perspective, CRS 2.0, CARF, and DAC8 represent a coordinated regulatory effort to integrate traditional finance and digital assets into a single, non-overlapping reporting ecosystem.

To minimize compliance overlap and prevent double reporting, the standards establish a clear division of labor: CARF targets the transactional layer, requiring Crypto-Asset Service Providers (CASPs) to report direct, on-chain crypto transactions, while CRS 2.0 modernizes the custodial layer, requiring traditional financial institutions and fintechs to report cash equivalents, specifically electronic money (e-money) and Central Bank Digital Currencies (CBDCs), alongside indirect crypto exposures. Within Europe, the DAC8 directive serves as the legislative vehicle, transposing both standards into unified EU law to link these digital asset flows directly to verified corporate and individual tax profiles.

For financial institutions and digital-native platforms, this convergence is driving significant changes to compliance operations and underlying data infrastructure. Managing reporting obligations across both traditional and digital assets now requires automated asset-classification capabilities, enhanced customer self-certification processes, and more agile, integrated data architectures.

We are working closely with big4 firms to remain at the forefront of regulatory updates and proactively prepare for the integration of new regulations and enhancements into our Tax solution. 

Equipping your organization for what’s next

• E-book

  Guide to global digital asset tax compliance: CARF, DAC8, CRS 2.0, Form 1099-DA

  With major regulations now in force, legacy tax compliance approaches fall short.
  This e-book offers a practical framework to help your firm design an automated, intelligent compliance system for the digital asset era.

  Download the e-book