Crypto is evolving fast, and so is the way it is regulated. Two major new tax reporting regimes are emerging: CARF (the global standard) and DAC8 (the EU’s version of CARF). These rules are going to change how crypto platforms like Wirex collect, report, and share user data across borders.
So, what are CARF and DAC8? Who will they affect? And what does this mean for crypto users in Europe and beyond? Let us break it down:
CARF (Crypto-Asset Reporting Framework):
Created by the Organisation for Economic Co-Operation and Development ('OECD'), CARF is a global framework for reporting crypto transactions to tax authorities. It requires crypto platforms and service providers (exchanges, wallet providers, etc.) to collect user identity, tax residence, transaction details, and value in fiat, then report on an annual basis.
DAC8 (Directive on Administrative Cooperation, version 8):
DAC8 is how the EU is incorporating CARF rules into European law. From 1 January 2026, all EU Member States must adopt reporting rules for crypto (and certain e-money) under DAC8 and exchange that data between tax authorities.
In short: CARF sets the global standard, while DAC8 ensures the EU applies it consistently and with added enforcement powers.
Both CARF and DAC8 aim to make tax reporting for crypto more straightforward and standardised.
Crypto providers will need to collect key information from their users; including name, address, date of birth, tax identification number and where they pay tax, as well as transaction details such as what was traded, when and for how much.
The value of each transaction will also need to be shown in local currency so that tax offices can assess the size and frequency of activity.
Once the reports are ready, platforms will send the data to their local tax authority, which will share it with other countries where the users are tax residents. In the EU, this exchange will be automatic, helping to create a single, consistent reporting system across all Member States.
What this means for the EU
DAC8 is a big step towards creating a single, transparent crypto market in Europe. It means that from 2026, all EU countries will follow the same reporting rules and share the same data.
This makes it much harder for anyone to avoid paying tax by moving assets across borders. It also gives users more consistency, as no matter where you are in the EU, your crypto activity will be treated in the same way.
By including e-money and stablecoins, DAC8 also recognises how digital payments are evolving, and ensures that tax authorities don’t fall behind.
In short, DAC8 brings crypto reporting in line with traditional finance, building trust and stability in the European crypto market.
What this means for the rest of the world
CARF extends this same approach globally. Over 50 countries have already committed to adopting it, with the first exchanges of information expected in 2027 and 2028.
Each country will set its own rules and timelines, but the goal is the same; to make sure crypto transactions are visible and properly reported for tax purposes.
Countries like the United States, Australia and Singapore are already preparing their versions of CARF. This means that within a few years, most major jurisdictions will be working from the same global standard.
Once in place, CARF will make it much harder to hide crypto income or move assets undetected. For users and companies, it will bring greater certainty and transparency.
The Bigger Picture
Both CARF and DAC8 represent a major milestone in the global recognition of crypto. They show that digital assets are now a permanent part of the financial landscape and that governments are serious about integrating them into existing tax systems.
For regulators, it’s about transparency. For users, it’s about clarity. And for platforms like Wirex, it’s about continuing to bridge the gap between traditional and digital finance in a safe, compliant, and user-friendly way.
Wirex will continue to monitor developments and keep you informed as the new frameworks come into effect. Together, we can help shape a fairer and more transparent future for crypto.