Over 60 countries have signed the CARF (Crypto-Asset Reporting Framework) agreement, which signifies the introduction of tax changes for the cryptocurrency sector. This event marks the transition of the crypto industry towards tighter accountability.
Introduction to CARF
The CARF agreement, effective in 2027, includes countries such as the UK and EU, with Singapore and the US expected to join by 2028. This agreement requires crypto platforms to maintain economic accountability and track transactions.
Impact of CARF on the Crypto Market
CARF mandates that crypto-asset services, such as exchanges and brokers, provide immediate transaction data. This means users will no longer be able to conduct anonymous transfers, while regulators aim to stop tax evasion that costs $427 billion annually.
Preparing for New Regulations
Companies in the cryptocurrency sector will face increased compliance costs due to new regulations. These changes may lead to higher fees for users; however, in the long run, CARF could promote sector professionalization and better user protections.
The changes introduced by CARF will serve as a stress test for the crypto industry, requiring platforms to adapt to a new reality where transparency and accountability take precedence.
