CARF and DAC8 explained
This is general information, not legal, tax, or financial advice. The relevant regulators are named below. Verify the current position with a qualified local professional and the official regulator before acting.
CARF is the OECD Crypto Asset Reporting Framework and DAC8 is the European Union law that puts it into effect across member states. Both require crypto platforms to collect user information and report transactions to tax authorities, with data collection from 1 January 2026 and the first cross border exchanges due by 30 September 2027, as of January 2026.
What CARF is and why it exists
The Crypto Asset Reporting Framework, abbreviated CARF, is the OECD standard for the automatic exchange of crypto account information between tax authorities. It was created to close a gap left by the earlier Common Reporting Standard, which covered traditional financial accounts but not most crypto assets. The OECD published the framework in 2023 and more than seventy jurisdictions have signalled an intention to take part, with first exchanges expected in 2027 or 2028 (as of January 2026).
Who must report
CARF places obligations on Reporting Crypto Asset Service Providers. In practice that covers centralised exchanges, brokers, certain wallet providers that act as intermediaries, and crypto automated teller machine operators. These providers must carry out due diligence to identify their users and their tax residence, then report qualifying transactions to their national tax authority, which exchanges the information with other participating jurisdictions (as of January 2026).
What is reported
Reportable activity includes exchanges between crypto and fiat currency, exchanges between different crypto assets, and certain transfers, alongside the user's identifying details and tax residence. The framework relies on self certification of tax residence by users, supported by the provider's own records. The goal is a clear picture of who transacted, how much, and where they are tax resident.
How DAC8 puts CARF into European Union law
DAC8 is the eighth update to the European Union Directive on Administrative Cooperation in taxation, and it is the European counterpart to the OECD framework. It was adopted on 17 October 2023. Member states had to transpose it into national law by 31 December 2025, and it applies from 1 January 2026, with the first exchange covering the 2026 year due by 30 September 2027 (as of January 2026). DAC8 also broadens cooperation in related areas, including reporting on electronic money and central bank digital currencies and the sharing of certain advance tax rulings for high net worth individuals.
The timeline at a glance
The sequence is consistent across the European Union and most adopting jurisdictions. Platforms began collecting reportable data from 1 January 2026. They prepare and submit reports for the 2026 year during 2027. Tax authorities then exchange that information with each other by 30 September 2027. Jurisdictions outside the European Union that adopt the OECD framework follow a similar path, with some starting their first exchanges in 2028 (as of January 2026).
How CARF relates to existing rules
CARF sits alongside the Common Reporting Standard, which continues to cover traditional financial accounts, and the two were updated together so that crypto and conventional assets are reported in a coordinated way. It is separate from the United States reporting regime, which uses domestic broker rules and Form 1099 DA rather than the OECD framework. This is general information and not tax advice, so confirm your own obligations with your national tax authority and a qualified professional.
Regulators and sources
- OECD, Crypto Asset Reporting Framework and amendments to the Common Reporting Standard
- European Commission, DAC8
Frequently asked questions
What does CARF stand for?
CARF stands for the Crypto Asset Reporting Framework, the OECD standard for the automatic exchange of crypto account information between tax authorities, published in 2023.
What is DAC8?
DAC8 is the European Union directive that puts the OECD Crypto Asset Reporting Framework into effect across member states. It was adopted on 17 October 2023 and applies from 1 January 2026 (as of January 2026).
Who has to report under CARF and DAC8?
Reporting Crypto Asset Service Providers, including centralised exchanges, brokers, certain intermediary wallet providers, and crypto automated teller machine operators, must identify users and report transactions to their tax authority.
When does reporting start?
Platforms began collecting data on 1 January 2026, report for the 2026 year during 2027, and tax authorities exchange the information by 30 September 2027 (as of January 2026).
How is CARF different from the Common Reporting Standard?
The Common Reporting Standard covers traditional financial accounts, while CARF was created to cover crypto assets that the earlier standard missed. The two were updated together to work in a coordinated way.
Implementation details and start dates differ between jurisdictions and continue to be finalised. Confirm the current reporting obligations and timeline with your national tax authority and a qualified professional before relying on them.