48 countries join OECD, the "gray era" of crypto investment officially comes to an end

On January 1, 2026, the crypto market will usher in a landmark moment. The Crypto Asset Reporting Framework (CARF), developed under the leadership of the Organisation for Economic Co-operation and Development (OECD), officially comes into effect, covering the first batch of 48 countries and regions. This is not merely a trading ban but a systematic shift to incorporate crypto assets into the global tax and regulatory system. From now on, every on-chain transaction and asset transfer will be within the scope of tax authorities.

Core Requirements of the CARF Framework

The CARF framework sets out three key requirements for Crypto Asset Service Providers (CASPs):

• Maintain comprehensive records of user transactions, including trading, exchanges, and asset transfers
• Verify users’ real identities and tax residency statuses
• Submit annual reporting to tax authorities, preparing for cross-border data exchange

This means that mainstream service providers such as exchanges, decentralized exchanges, and crypto ATMs must start collecting and storing user transaction data from 2026, in preparation for the cross-national automatic data exchange launched in 2027.

Implementation Timeline in Phases

The global rollout of CARF adopts a phased strategy, which determines the adjustment cycles for different regions:

This regulatory shift differs from previous ones

CARF is fundamentally different from the earlier Common Reporting Standard (CRS). CRS mainly targeted traditional financial assets, whereas CARF is the first to include crypto assets within an international tax transparency framework. In the past, investors could rely on the “concealment” of crypto assets to evade regulation, but that era is over. Whether or not crypto assets are exchanged for fiat currency, as long as there are on-chain transaction records, they must be reported to tax authorities.

Market Already Reacting in Advance

From related news, it’s clear that the market’s response to the implementation of CARF has been intense. Ahead of the regulatory framework coming into effect, whales have accelerated their accumulation of Bitcoin, with over 350,000 BTC accumulated in the past two months. Meanwhile, Bitcoin inflows into Binance have surged 34-fold, a phenomenon often indicating that market participants are preparing for major changes.

In terms of price, Bitcoin has stabilized above $91,000 after the framework takes effect, while altcoins have seen significant capital inflows—XRP broke above $2.11 to hit a recent high, SHIB surged 13.48% in a single day, and BONK soared over 34%. This divergence reflects a market reassessment of the status of different assets under the new regulatory environment.

Impact Pathways for Different Participants

For exchanges, CARF means increased operational costs and stricter compliance requirements. Centralized exchanges need to allocate more resources toward data collection and reporting.

For investors, this marks a shift from “possibly unknown” to “inevitably tracked.” Especially for high-net-worth individuals and institutions, cross-border data exchange significantly reduces the space for tax evasion.

For project teams, this could drive market segmentation toward compliance. Projects with clear legal status and practical application scenarios may attract more institutional funding, while purely speculative assets might see diminished appeal.

Key Focuses for the Future

The phased implementation of CARF indicates that the next few years will be a period of ongoing adjustment in the crypto market. The first cross-border data exchange in 2027 will be a key milestone, when we will see how different countries’ tax authorities handle this data, potentially triggering a new wave of market reactions.

The timeline for the US joining (implementation in 2028, participation in data exchange in 2029) is also noteworthy. As the world’s largest crypto market, the US’s formal integration will mark the entry of the most significant global crypto investment hub into a fully transparent tax regulatory era.

Summary

The enactment of CARF signifies a transition of the crypto market from the “gray era” to the “transparent era.” This is not a negation of crypto assets but an integration into regulatory standards comparable to traditional finance. For the market, this represents a profound restructuring—non-compliant speculative spaces will be squeezed, while compliant innovative applications may gain more institutional support. The market is already reacting in advance: whale accumulation, capital differentiation, price volatility—all tell the same story: the crypto market is moving from wild growth toward regulation. The next question is, in this new ecosystem, who can adapt and who will fall behind.