What is CARF?
CARF is the OECD Crypto-Asset Reporting Framework: a global tax reporting standard for automatic exchange of information on reportable crypto-asset transactions.
CARF means Crypto-Asset Reporting Framework. It is an OECD standard designed to make crypto-asset transactions reportable to tax authorities and exchangeable between participating jurisdictions.
Short answer
Under CARF, reporting crypto-asset service providers collect user and transaction information, report it to their domestic tax authority, and tax authorities exchange that information with other participating jurisdictions.
Why CARF exists
The OECD created CARF because crypto-assets can be held and moved outside the traditional financial intermediaries covered by existing automatic exchange regimes. CARF extends tax reporting to crypto intermediaries.
What transactions are covered?
- Exchanges between crypto-assets and fiat currency.
- Exchanges between one or more crypto-assets.
- Transfers of crypto-assets.
- Certain reportable retail payment transactions.
What data is collected?
CARF can require reporting of user identity, tax residence, taxpayer identification numbers, transaction type, crypto-asset type, number of units, total value, acquisitions, disposals and transfers.
CARF vs DAC8
CARF is global. DAC8 is the European Union directive that applies a similar reporting logic inside the EU legal framework. Together, they point toward a cross-border tax reporting network for crypto users.
Why Bull Bitcoin opposes CARF-style mass reporting
Bull Bitcoin does not oppose taxation. The objection is to mass automatic reporting that links civil identity, tax residence, crypto activity, transaction values and potentially blockchain activity. In crypto, leaked or abused data can become a physical security risk for holders and their families.
Primary sources
French reference page: Qu'est-ce que CARF ?