Japan fires the first shot, the OECD crypto tax framework officially launched, with 48 countries worldwide simultaneously collecting user data

Japan will officially implement the Crypto-Asset Reporting Framework (CARF) issued by the OECD starting January 1, 2026. This is not just a matter for Japan but a global initiative involving 48 countries and regions simultaneously to enhance transparency in crypto asset taxation. Exchanges like Coincheck have begun collecting key information such as “tax residence country” from users, marking the beginning of an organized regulatory era in the global crypto market.

Specific Requirements for Japan’s CARF Implementation

What information users need to submit

On January 6, Coincheck sent a notification to all users requesting the submission of the following key information:

• Tax residence country
• Real identity information
• Transaction records

Other Japanese exchanges will also gradually implement similar information collection procedures. This information will be reported to the National Tax Agency of Japan and will eventually be integrated into the OECD’s cross-border data exchange system.

Submission timeline for different users

Consequences of non-compliance

According to reports, users who fail to submit information within the deadline or submit false information may face penalties under the law. This means CARF is not just about data collection but a legally binding regulatory framework.

Global Context: The Compliance Wave of 48 Countries Launching Simultaneously

Japan’s CARF implementation is just the beginning. According to relevant information, this is a global effort led by the OECD:

Phased participation of countries worldwide

First phase (2026 start):

• All EU member states
• UK, Brazil, Cayman Islands, and 45 other countries and regions

Second phase (2027 or 2028):

• Australia, Canada, Singapore, Switzerland, UAE, and 22 other countries expected to join in 2027-2028

Final phase (2029):

• The US plans to join the system in 2029

Ultimately, 75 countries worldwide will form a comprehensive regulatory network.

Core Mechanisms of the CARF Framework

• Crypto Asset Service Providers (CASPs) must disclose user transaction information to tax authorities
• Covering all activities including trading, exchanges, and asset transfers
• Normalized information exchange among member countries starting in 2027
• On-chain transaction records will be linked with real identities and tax information

What Does This Mean

Impact on Ordinary Users

The era of “on-chain anonymity” is coming to an end. Previously, users might have thought that as long as they didn’t withdraw funds, no one would know, but the CARF framework changes all that. Exchanges, as the first point of data collection, are now required to have complete transaction records and real identities for each user. After the cross-border data exchange begins in 2027, this information will be shared globally, enabling tax authorities to track fund flows across borders.

Impact on Exchanges

Exchanges become the enforcers of the CARF framework. They need to:

• Collect and verify users’ real identities and tax information
• Record all transaction details
• Submit annual reports to tax authorities
• Be responsible for the accuracy of the information

This significantly increases compliance costs for exchanges but also enhances the market position of compliant exchanges.

Market Perspective

Related reports indicate that the push for a compliant framework is paving the way for institutional capital to enter the market. CME’s Bitcoin futures holdings have rebounded by over 10%, returning to the $10 billion mark. The logic behind this is: clear regulations give institutions the confidence to invest on a large scale. The previous “gray area” is being eliminated, replaced by a clear legal framework, which is more attractive to institutional investors.

Key Future Milestones

• December 31, 2026: Deadline for existing Japanese users to submit information, a critical point for exchanges worldwide to complete their initial data collection
• 2027: Official start of cross-border data automatic exchange under CARF, with global tax authorities beginning to share information
• 2027-2028: More countries join the CARF system, further expanding the scope of regulation
• 2029: The US joins the system, completing a comprehensive crypto asset tax regulation network among major economies

Summary

The launch of Japan’s CARF marks a new phase in global crypto asset regulation. It is not an isolated action by a single country but a systematic regulatory effort coordinated by the OECD involving 48 countries simultaneously. Users are required to submit their information by December 31, 2026, or face penalties. More importantly, the cross-border data exchange in 2027 will enable global tax authorities to share information, erasing the once-advantageous “on-chain anonymity.”

For investors, this trend presents both challenges and opportunities. The challenge lies in rising compliance costs, while the opportunity is that the market is moving from “gray” to “transparent,” with institutional capital entering on a large scale. In any case, 2026 will be the year of compliance for the crypto market, and adapting to this change has become inevitable.