Crypto-Asset Reporting Framework (CARF / DAC8) – Overview, Scope & Reporting Requirements

Overview

The Crypto-Asset Reporting Framework (CARF) is an international tax transparency framework developed by the Organisation for Economic Co-operation and Development (OECD). Its objective is to enable the automatic exchange of information on crypto-asset transactions between tax authorities.

CARF addresses reporting gaps arising from the increasing use of crypto-assets that fall outside the scope of existing tax reporting frameworks such as the Common Reporting Standard (CRS). It introduces standardised rules for the collection, reporting, and exchange of information related to crypto-asset users and transactions.

Within the European Union, CARF is implemented through Directive on Administrative Cooperation 8 (DAC8), making CARF reporting mandatory for in-scope MiCA entities operating in the EU.

Legal Context

CARF is developed and maintained by the OECD as a global reporting standard.

In the European Union:

• CARF is implemented through DAC8

• Supervised by national tax authorities

• Enforced through domestic legislation transposing DAC8

CARF operates alongside, but separately from:

• CRS / DAC2 (financial accounts)

• FATCA (US tax reporting)

DAC8 also introduces enhancements to CRS but CARF remains a distinct framework focused specifically on crypto-assets.

Applicability

CARF applies to Crypto-Asset Service Providers (CASPs), including entities that:

• Exchange crypto-assets for fiat currency

• Exchange crypto-assets for other crypto-assets

• Transfer crypto-assets on behalf of users

• Safeguard or administer crypto-assets

• Facilitate reportable crypto-asset transactions

CARF applies irrespective of whether the service provider is regulated under financial services law, focusing instead on functional activity.

Obligations generally apply where:

• The user is tax resident in a participating jurisdiction, or

• The service provider has a sufficient nexus to a reporting jurisdiction

Obligations

CARF introduces obligations across four core areas:

• Customer due diligence and user identification

• Transaction tracking and classification

• Data collection and record keeping

• Annual reporting to tax authorities

Service providers must identify reportable users, determine tax residency, and collect transaction-level data in accordance with OECD-defined rules.

Reporting

CARF reporting requires the submission of annual reports containing, among other elements:

• User identification details

• Jurisdiction(s) of tax residence

• Crypto-asset type and classification

• Transaction values, volumes, and timestamps

• Transfers, exchanges, and disposals

Reports must be submitted in OECD-defined XML formats, following strict schemas and validation rules.

Under DAC8, reports are submitted to national tax authorities, which exchange the information automatically with other participating jurisdictions.

Challenges

Common operational challenges include:

• Identifying reportable users across decentralised systems

• Incomplete or inconsistent customer data

• High transaction volumes and data granularity

• Complex crypto-asset classification rules

• Managing jurisdiction-specific reporting requirements

• XML schema validation and submission errors

These challenges increase operational risk and supervisory scrutiny, particularly for service providers operating across multiple jurisdictions.

REGREP Solution

REGREP supports CARF / DAC8 as a regulatory reporting infrastructure, enabling crypto-asset service providers to operationalise reporting obligations in a controlled and scalable manner.

REGREP provides:

• Structured ingestion of crypto-asset transaction and user data

• Data validation aligned with OECD CARF XML schemas

• Jurisdiction-aware reporting logic

• Automated generation of CARF-compliant XML reports

• Audit-ready data traceability and historical records

• API-first integration with trading, custody, and ledger systems

REGREP supports the technical preparation and reporting of CARF submissions and does not replace customer due diligence, tax determination, or regulatory responsibility.

• Organisation for Economic Co-operation and Development (OECD)

Links are provided for reference purposes only. REGREP is not affiliated with or endorsed by any regulatory authority.

• Common Reporting Standard (CRS / DAC2 / AEOI)

• FATCA Reporting

• Crypto-asset regulatory reporting infrastructure

• Data ingestion and validation platform