Crypto-Asset Reporting Framework (CARF)

The Crypto-Asset Reporting Framework (CARF) is an international tax transparency framework developed by the Organisation for Economic Co-operation and Development (OECD). The framework was designed to provide for the collection and exchange of tax-relevant information relating to certain crypto-asset transactions.

CARF was developed in response to the rapid growth of the crypto-asset market and the increasing use of crypto-assets for investment and payment purposes. The framework seeks to enhance tax transparency by establishing a standardised approach for the reporting and exchange of information on crypto-asset transactions between participating jurisdictions.

Under the framework, Reporting Crypto-Asset Service Providers are required to collect and report information on crypto-asset transactions that they facilitate on behalf of users who are subject to the reporting requirements.

KEY FEATURES OF CARF

1. A standardised framework for the reporting of certain crypto-asset transactions;
2. Due diligence procedures to identify reportable users and relevant jurisdictions;
3. Reporting requirements for certain Crypto-Asset Service Providers; and
4. The exchange of information between participating tax authorities.

The framework is designed to ensure that tax administrations receive consistent, reliable, and actionable data on crypto-asset transactions, thus enhancing their ability to enforce tax compliance in an increasingly digital financial environment.

INTERNATIONAL DEVELOPMENTS

Several jurisdictions have announced their intention to implement the CARF regime as early as 2026, with the first exchanges in 2027. Other jurisdictions have announced implementation in timelines commencing in 2027.  

Information regarding Bermuda's participation in CARF, including any applicable reporting obligations and implementation timelines, will be published in due course.

RESOURCES

• OECD Crypto-Asset Reporting Framework (CARF)