CARF Falls Short on Taxable Crypto Activity

The OECD Crypto-Asset Reporting Framework (CARF) is facing criticism for its narrow scope, which leaves out an estimated 86% of potentially taxable crypto activity. According to Chainalysis' report, $457 billion in taxable on-chain activities occurred worldwide in 2025, but CARF only covers about 14% of these transactions.

The largest share of the $457 billion came from North America, accounting for almost $134.6 billion, while the European Union generated around $125.1 billion. CARF was developed by the OECD in 2022 and mandates the disclosure of information on transactions to local tax authorities.

However, Chainalysis notes that decentralized exchanges, peer-to-peer transactions, income streams, and payments are not covered under CARF because they do not involve intermediaries or organizations taking commissions. Colby Mangels, an adviser to the OECD who participated in developing CARF, stated that the framework was designed for those organizations facilitating cryptocurrency transactions.

But tax authorities may soon require DeFi platforms or their operators to report certain activities as service providers under anti-money laundering regulations. This could potentially expand the scope of CARF and bring more taxable crypto activity into its purview.