Chainalysis Warns CARF Framework Fails to Capture Majority of Taxable Crypto Activity

A Chainalysis report has estimated that $457 billion of potentially taxable on-chain crypto activity took place in 2025, but the share covered by international tax reporting rules appears relatively small.

The United States accounted for $112.6 billion of this total, while North America led regions with $134.6 billion, followed by the European Union at $125.1 billion.

However, Chainalysis estimates that CARF (Crypto-Asset Reporting Framework) may cover only 14% of this activity, leaving an 86% gap due to its focus on centralized intermediaries.