Only a handful of countries, including India and Vietnam, are not yet participating in CARF, making country selection increasingly important for crypto investors.
The Crypto-Asset Reporting Framework (CARF) is an international initiative designed to improve reporting and compliance of crypto-asset holdings across jurisdictions.
For expats, investors, and financial institutions, understanding CARF and which countries participate—or do not—is critical to ensuring regulatory compliance and avoiding penalties.
However, individuals seeking greater confidentiality for their crypto holdings should not focus solely on non-CARF countries.
More sophisticated structuring solutions are often necessary to achieve enhanced privacy while remaining compliant, which we can assist with through our trusted partners.
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The information in this article is for general guidance only. It does not constitute financial, legal, or tax advice, and is not a recommendation or solicitation to invest. Some facts may have changed since the time of writing.
The Crypto-Asset Reporting Framework, or CARF, is a global standard for the collection and exchange of information on crypto-asset holdings and transactions.
It requires crypto service providers, such as exchanges and custodians, to report users’ crypto activities to tax authorities.
CARF aims to increase transparency, reduce tax evasion, and harmonize reporting standards internationally.
CARF reporting covers various types of crypto-assets, including cryptocurrencies like Bitcoin, Ethereum, and other tokens that meet the framework’s definition of crypto assets.
CARF’s primary goal is to ensure that taxpayers accurately report crypto holdings and transactions to their local tax authorities.
By enabling automatic exchange of information (AEOI) between participating countries, CARF seeks to:
CARF requires crypto service providers to collect and report user identity and crypto transaction data to tax authorities.
In practice, this means exchanges, custodians, and certain wallet providers must report information such as customer identification details, crypto-asset balances, and transaction activity.
Reports are typically submitted annually and shared automatically between participating tax authorities under information-exchange agreements.
Anyone using a CARF-compliant crypto platform may be affected, regardless of where they live.
This includes individual investors, expats, and offshore clients holding crypto through exchanges or custodians operating in CARF jurisdictions.
Crypto businesses themselves are also directly affected, as they carry the reporting and compliance burden.
As of December 2025, only five relevant jurisdictions, like Argentina, remain non-CARF while over 75 jurisdictions have committed to CARF reporting between 2027 and 2029, as per the OECD.
Non-CARF countries are jurisdictions identified as relevant to the Crypto-Asset Reporting Framework but that have not yet formally committed to implementing CARF.
The Global Forum has identified the following jurisdictions as not yet committed to CARF implementation:
Some of these jurisdictions have expressed intent to adopt CARF in the future, but until domestic legislation and exchange agreements are in place, they remain non-CARF jurisdictions.
Importantly, non-CARF status does not mean crypto activity is unregulated or tax-free.
Local tax reporting obligations may still apply, and CARF reporting can still occur indirectly if crypto platforms operate in CARF-participating countries.
CARF countries, such as the UK and UAE, are jurisdictions that have formally committed to implementing the Crypto-Asset Reporting Framework and exchanging information automatically.
The Global Forum has grouped CARF countries by their planned first exchange year:
Jurisdictions undertaking first CARF exchanges by 2027
Jurisdictions undertaking first CARF exchanges by 2028
Jurisdictions undertaking first CARF exchanges by 2029
The United States is notable as it does not participate in CRS but will implement CARF-style reporting through its own regulatory and tax enforcement framework.
Crypto is legal or permitted in roughly 110–120 countries worldwide.
In these jurisdictions, individuals can generally own, trade, or use crypto assets, though regulatory treatment varies widely.
Note:
Even in countries where crypto is legal, restrictions may apply through banking access, exchange licensing, taxation, or reporting obligations such as CARF or CRS-style rules.
There is no universal tax-free crypto withdrawal threshold under CARF.
CARF governs reporting, not taxation.
Whether tax is due depends on local rules, including capital gains thresholds, holding periods, and whether crypto is treated as income or an asset. In many jurisdictions, even small gains may be taxable.
CARF applies to crypto assets, while CRS applies to traditional financial accounts.
CRS covers bank accounts, investments, and custodial assets. CARF fills the gap by targeting crypto-assets that previously fell outside standard financial reporting frameworks.
Together, they create broader global financial transparency.
FATCA is US-focused, while CRS is a global standard.
FATCA requires reporting of US persons to the IRS. CRS enables mutual exchange of financial information between participating countries.
CARF follows the CRS model but focuses specifically on crypto-assets rather than bank or investment accounts.
| Feature | CARF | CRS | FATCA |
| Full name | Crypto-Asset Reporting Framework | Common Reporting Standard | Foreign Account Tax Compliance Act |
| Scope | Crypto assets (cryptocurrencies, certain tokens) | Traditional financial accounts (bank accounts, investments) | US persons’ foreign accounts |
| Issuing body | OECD / Global Forum | OECD | United States (IRS) |
| Who must report | Crypto exchanges, custodians, certain wallet providers | Banks, financial institutions | Foreign financial institutions |
| Who is reported | Crypto asset holders | Account holders | US citizens, residents, and entities |
| Type of reporting | Automatic exchange of crypto-asset information | Automatic exchange of financial account information | Reporting to the IRS |
| Geographic reach | Global (OECD-led) | Global (100+ countries) | US-centric |
| First reporting period | 2027–2029 (phased) | Ongoing | Ongoing |
| Covers crypto? | Yes | No | Indirectly (through US tax rules) |
| Covers bank accounts? | No | Yes | Yes (for US persons) |
| Penalties for non-compliance | Determined by local tax law | Determined by local tax law | Severe US penalties and withholding |
As CARF rolls out from 2027 to 2029, the scope of crypto reporting will expand rapidly.
Investors using exchanges or custodians in CARF jurisdictions should expect greater tax authority visibility, even if they reside in non-CARF countries.
Penalties for failing to report crypto depend on local tax law, not CARF itself.
CARF enables information sharing, but enforcement is handled domestically. Penalties may include fines, interest on unpaid taxes, audits, or criminal charges in cases of deliberate tax evasion.
Yes, reporting may still be required even without selling.
Under CARF, exchanges can report holdings and balances, not just disposals. Tax obligations depend on local rules, but visibility to tax authorities may exist regardless of activity.
A non-CRS country does not automatically exchange financial account information with other jurisdictions.
Similarly, non-CARF countries do not participate in automatic crypto-asset reporting, though this does not remove local tax or disclosure obligations.