Crypto Assets tax transparency: The U.S. Treasury officially promotes CARF, and the global Compliance target for 2027 may become a certainty.

Recently, the U.S. Treasury has submitted the Crypto Assets Reporting Framework (CARF) regulations for White House review, aiming for global Compliance by 2027, marking the entry of global Crypto Assets tax regulation into a new phase.

The CARF, led by the OECD, has now received support from nearly 90 countries. This standard requires global Crypto Assets exchanges and related service providers to report user transaction records to tax authorities according to uniform rules, ensuring that Crypto Assets transactions are subject to formal tax regulation.

Under this framework, the trading data of users on trading platforms operating in the United States in the future will be directly reported to the IRS.

It is worth noting that CARF not only requires reporting the transaction amount but also mandates recording the wallet addresses of the sender and receiver, establishing a regulatory network that covers the entire chain of transactions.

Tax experts say that CARF can be seen as a "Universal Reporting Standard" in the Crypto Assets field. Although the U.S. previously did not participate in traditional banking information-sharing systems, it is now actively integrating this new framework into its regulatory system.

Moreover, unlike the upcoming implementation of the 1099-DA form, CARF reports will be submitted directly to the IRS without providing a copy to the taxpayer.

This also means that tax authorities will directly compare transaction records with tax declarations using data analysis tools from companies like Palantir, and any undisclosed Crypto Assets activities may trigger a tax audit.

Although the framework is expected to be fully implemented by 2027, its potential impact on investor privacy has sparked extensive discussions within the community, and subsequent developments reviewed by the White House will also be closely watched.

In this context of regulatory dynamics, the Bitcoin market has gradually warmed up, with the price returning to the level of $91,500, demonstrating resilience after experiencing a recent sharp decline.

This regulatory progress and market performance together outline the complex landscape of the Crypto Assets sector as it navigates the Compliance process and market fluctuations.

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