Chainalysis Report Reveals CARF's Limited Coverage of On-Chain Crypto Activities
A recent report from Chainalysis reveals that the current framework for tracking cryptocurrency activity, known as the Cryptocurrency Asset Report Framework (CARF), only covers around 14% of all on-chain taxable crypto activities.
The report estimates that in 2025, the total amount of on-chain taxable crypto activities worldwide will reach at least $45.7 billion USD. The United States is estimated to contribute approximately $11.3 billion USD to this figure, with North America leading the way at $13.46 billion USD and the European Union following closely behind at $12.51 billion USD.
The report highlights that CARF's design as a framework centered around intermediaries in the crypto space is the primary cause of its limited coverage. A former OECD advisor, Colby Mangels, notes that CARF was designed to focus on centralized exchanges and intermediaries, which has left many decentralized finance (DeFi) activities outside of its scope.
Mangels also mentions that tax authorities are paying close attention to the development of anti-money laundering regulations, including the potential classification of DeFi platforms or their operators as regulated crypto service providers.