CARF Framework Gains 60-Nation Backing, Reshaping Crypto Oversight

- Over 60 countries signed onto the Crypto-Asset Reporting Framework (CARF). - CARF will require near-real-time transaction reporting by crypto platforms, including decentralized services. On July 5, 2025, an opinion piece on Cointelegraph confirmed that more than 60 nations, including the UK and EU, have signed the CARF framework, setting the crypto industry on a path toward unprecedented tax transparency and regulation. Designed to combat global tax evasion and enhance accountability, CARF mandates near-real-time transaction reporting from exchanges, brokers, ATM operators, non-custodial services, and decentralized exchanges (DEXs). The United Kingdom and the European Union will begin implementation by 2026, while other jurisdictions, such as the United States, the United Arab Emirates, and Singapore, plan to follow by 2028. To comply, countries must enact domestic legislation at least one year before reporting starts. For example, the EU must integrate these rules into its national laws by the end of 2025 for enforcement to begin on January 1, 2026. The framework represents a pivotal shift for the cryptocurrency sector. Although stricter transparency standards may erode privacy, a foundation of the industry, the regulations promise greater legal clarity. This will likely encourage institutional adoption and foster long-term market stability. Furthermore, CARF should help governments recover billions in public revenue lost to global tax evasion. The operational impact on crypto service providers will be significant, as compliance could require substantial investments in legal resources, infrastructure, and personnel. As a result, this may lead to higher user fees, limit services in early-adopting regions, or even force some providers to exit the market. Still, over time, CARF will position compliant platforms as leaders in an increasingly professionalized sector. Market data from July 5 at 16:08 UTC shows Tether USDt (USDT) trading at $1, which represents a -0.02% change over the past 24 hours.