Understanding CARF 2027: What Every Crypto Stakeholder Must Know Now

At its meeting on 26 November 2025, the Swiss Federal Council approved changes to the Ordinance on the International Automatic Exchange of Information in Tax Matters (AEOI Ordinance). This ordinance includes implementing provisions for the amendment of the Federal Act on the International Automatic Exchange of Information in Tax Matters (AEOIA). Both pieces of legislation are set to take effect on 1 January 2026. More on the Swiss State Secretariat for International Finance SIF

The global tax and compliance environment for crypto-assets has experienced a significant transformation with the introduction of the Crypto-Asset Reporting Framework (CARF) developed by the Organisation for Economic Co-operation and Development (OECD). As one of the most impactful regulatory standards in the digital asset sector, CARF signifies a unified international initiative to enhance the transparency of crypto transactions and bolster global tax enforcement, while addressing risks like tax evasion and illicit financial activities. We offer a detailed overview of CARF in 2027, covering its purpose, scope, implementation timeline, reporting requirements, and practical implications for market participants.

What Is CARF 2027?

The Crypto-Asset Reporting Framework (CARF) is a globally accepted standard designed to enable the automatic exchange of tax-related information on crypto-asset transactions among participating jurisdictions. Initially developed and negotiated under a G20 mandate, CARF was officially adopted by the OECD and supported by an increasing number of countries, with implementation occurring in stages, leading to the first planned exchanges of information in 2027. CARF operates similarly to the Common Reporting Standard (CRS)—which regulates financial account information—but is specifically adapted to the distinct characteristics of crypto-assets. It emphasizes transaction-level transparency rather than account balances and broadens reporting requirements to encompass a wider range of digital asset activities.

Why CARF Was Created?

The rapid growth of crypto-assets and decentralised finance (DeFi) presented a challenge: conventional tax reporting regimes were insufficient to capture cross-border transactions and evolving business models. CARF was developed to:

• Enhance global tax transparency

• Close gaps exploited for tax evasion

• Standardise reporting obligations across jurisdictions

• Mitigate illicit use of crypto for money laundering or sanctions circumvention Walkers+1

CARF’s emphasis on automatic information exchange strengthens international cooperation by ensuring tax authorities can track and verify crypto-related income or gains that were historically difficult to monitor.

Who Must Comply? Reporting Crypto-Asset Service Providers (RCASPs)

Under CARF, the principal entities with reporting obligations are Reporting Crypto-Asset Service Providers (RCASPs) — defined as individuals or organisations that, as a business, facilitate or effectuate crypto-asset transactions on behalf of customers. These can include:

• Centralised crypto exchanges

• Brokers, dealers, and market makers

• Crypto-asset intermediaries

• Operators of crypto ATMs

• Certain decentralised platforms where a business-like service is offered

RCASPs are required to collect customer data, including tax residency and identification information, and to conduct due diligence to determine which customers and transactions are reportable under CARF rules.

What Transactions Are Reported?

CARF 2027 outlines three primary categories of reportable activity:

1. Exchanges between crypto-assets and fiat currency

2. Exchanges between different crypto-assets

3. Transfers of crypto-assets, including where crypto is used as payment or transferred to unhosted wallets Wikipedia

Unlike traditional financial reporting, CARF captures detailed transaction-level data rather than solely account holdings, reflecting the dynamic nature of digital-asset markets.

For entities subject to CARF, the compliance burden includes:

• Registering as a reporting entity with local tax authorities

• Collecting accurate customer tax data

• Implementing robust due diligence processes

• Reporting annually in the specified XML format

• Maintaining systems capable of capturing relevant transaction details for global exchange

Given CARF’s scope and depth, many organisations have begun upgrading internal controls, data infrastructure, and compliance frameworks well ahead of reporting deadlines.

Within the European Union, CARF’s core principles are reflected in the EU’s Directive on Administrative Cooperation 8 (DAC8), which amends existing tax cooperation laws to align domestic reporting requirements with CARF standards. DAC8 requires EU member states to obtain similar transactional data from RCASPs and exchange it with the relevant tax authorities within set timelines.

Final Thoughts

By 2027, CARF will serve as a fundamental element in the global oversight of crypto-assets. Its automatic exchange systems and wide-ranging involvement demonstrate a worldwide agreement on the need for transparency and accountability in digital-asset transactions. Entities within the crypto industry, including exchanges, brokers, and payment providers, must prioritize CARF compliance as a central aspect of their regulatory strategy.