Understanding the OECD Crypto-Asset Reporting Framework (CARF)

CARF is a global tax transparency standard designed to ensure that crypto transactions are reported consistently across jurisdictions.

It requires Crypto-Asset Service Providers (CASPs) - including exchanges, brokers, dealers and certain wallet/payment providers - to collect and report customer and transaction data to their domestic tax authorities.

Those authorities then exchange the information internationally, in the same way as they already do for traditional finance under the Common Reporting Standard (CRS).

Why is CARF being introduced?

Because:

• Crypto transactions often cross borders and may go unreported.
• Authorities want a consistent global approach to prevent tax evasion.
• Existing frameworks like CRS did not fully cover crypto-assets.

The OECD finalised CARF in 2022, and many jurisdictions - especially in Europe - are now incorporating it into their legislation.

The European Union is implementing CARF through DAC8, a major update to the EU’s tax reporting rules.

DAC8 makes reporting mandatory for all Crypto-Asset Service Providers serving EU residents, regardless of where the provider is based.

SwissBorg, as a regulated European entity, must comply fully with DAC8 and CARF.

When do the rules take effect?

• EU reporting under DAC8 is expected to begin from 2026, with data collected for the preceding year.
• Other jurisdictions (e.g., the UK) are implementing CARF on similar timelines.

As countries finalise their laws, timelines will become clearer, and we will share updates with our community.

CARF/DAC8 applies broadly to both service providers and users:

Service Providers (CASPs / RCASPs)
Must collect and report information on users and their crypto transactions.

Individual and institutional clients
May be required to provide additional tax information (such as tax residency and tax ID numbers) so that the provider can comply with reporting obligations.

This means:

• We may ask you to confirm or update tax residency information.
• Certain transactions may be reported to the relevant tax authority.

This is a legal requirement across Europe and beyond, not a SwissBorg policy.

CARF applies widely, including:

• Cryptocurrencies (BTC, ETH, etc.)
• Stablecoins
• Certain NFTs (when used for payments or investments)
• Tokenised real-world assets
• Exchange tokens and utility tokens

The intention is to capture any asset that can be transferred or held in a digital form for investment or payment purposes.

Providers must report two categories of information:

A. Customer Identification Data

This may include:

• Name
• Address
• Date of birth
• Tax residency
• Tax Identification Number (TIN)
• Entity classification (for companies), and where relevant, controlling persons

B. Transaction Data

Including:

• Purchases and sales
• Crypto-crypto swaps
• Transfers of crypto-assets
• Certain payments made in crypto

The goal is to help tax authorities understand movements of value and compare this with individual tax declarations.

How is the data used?

The service provider submits the report to its local tax authority.

That authority then shares the relevant information with the countries where the user is tax-resident.

• CRS covers traditional financial accounts.
• CARF extends similar reporting obligations to crypto-assets.
• In the EU, DAC8 integrates CRS and CARF so that reporting is consistent and duplication is avoided.

Most users will only need to:

• Confirm or update tax residency details (self-certification forms).
• Provide a Tax Identification Number if requested.
• Update information if they move to a new country or change tax residency.

Providing accurate information ensures that we can meet regulatory requirements and continue offering compliant services.

No. CARF is not a tax. It is a reporting system.

Your tax obligations depend on your local laws. For example:

• Many European countries treat crypto-to-fiat conversions as taxable disposals.
• Some consider crypto-to-crypto swaps (including into stablecoins) as taxable events.
• Some require declared holdings even without disposals.

Because rules vary widely, it is always best to consult a tax professional specialising in crypto in your country.

CARF/DAC8 reporting is carried out under strict data protection frameworks, including GDPR in the EU.

Only tax authorities receive your information; it is not shared with third parties for commercial purposes.

SwissBorg collects and reports only what is legally required - no more.

Even without withdrawals to fiat, you may need to declare:

• Crypto disposals (e.g., swaps into stablecoins or other tokens)
• Gains or losses from trades
• A snapshot of your holdings (in countries where this is required)

Documents you may need

SwissBorg offers two exportable account statements suitable for tax reporting:

• PDF summary (high-level overview)
• Excel statement (detailed transaction-level data)

The Excel version includes:

• Timestamps (local + UTC)
• Transaction types
• Assets involved
• Gross amounts, net amounts, fees
• Notes and descriptions

This can be used with tax reporting tools or provided to your accountant.

This depends entirely on your jurisdiction’s rules.

For example, some EU countries require residents to declare foreign financial accounts, including accounts held with non-domestic crypto service providers.

SwissBorg cannot advise on local tax form requirements, so please consult a tax advisor familiar with the rules of your country.