Crypto-Asset Reporting Framework (CARF): Non-CARF Countries Guide

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.

Questo articolo tratta di:

• What is crypto asset reporting framework?
• How does CARF ensure ongoing compliance?
• Which countries are not part of CARF?
• How to avoid capital gains tax in crypto?

Punti di forza:

• CARF introduces automatic global reporting for crypto assets.
• Reporting begins in phases from 2027 to 2029.
• Crypto exchanges and custodians carry the reporting burden.
• CARF reduces the ability to hold crypto offshore without disclosure.

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What is CARF reporting?

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.

What is the purpose of CARF?

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:

• Prevent tax evasion through anonymous or cross-border crypto transactions
• Improve compliance among financial institutions and crypto service providers
• Standardize reporting requirements globally, making compliance easier for international investors

CARF Reporting Requirements

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.

Who is likely to be affected?

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.

Non-CARF Countries

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:

• Argentina
• El Salvador
• Georgia
• India
• Vietnam

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.

Which countries are part of CARF?

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

• Stati Uniti

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.

How many countries are crypto legal?

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:

• Legal or tolerated: about 110–120 countries
• Restricted or partially banned: about 30–40 countries
• Broadly banned: fewer than 10 countries

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.

How much crypto can I cash out without paying taxes?

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.

What is the difference between CARF and CRS?

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.

What are the key differences between FATCA and CRS?

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.

Caratteristica	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?	Sì	No	Indirectly (through US tax rules)
Covers bank accounts?	No	Sì	Yes (for US persons)
Penalties for non-compliance	Determined by local tax law	Determined by local tax law	Severe US penalties and withholding

Linea di fondo

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.

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Adam è un autore riconosciuto a livello internazionale in materia finanziaria con oltre 830 milioni di visualizzazioni di risposte su Quora, un libro molto venduto su Amazon e un contributo su Forbes.