Crypto Tax Gap Widens as CARF Falls Short
Crypto users generated at least $457 billion in taxable activity on public blockchains in 2025, according to Chainalysis estimates. The figure includes trading gains, income from mining, staking, and lending, as well as everyday crypto payments.
Americans produced the largest share of this total, contributing $112.6 billion, more than any other country. North America led all regions with $134.6 billion in taxable flows, just ahead of the European Union's $125.1 billion.
The Crypto-Asset Reporting Framework (CARF) was released by the Organisation for Economic Co-operation and Development (OECD) in 2022, aiming to capture a significant portion of this activity. However, CARF only works where a company stands in the middle, covering just 14% of on-chain taxable activity.
This leaves the remaining 86% untouched, moving through decentralized exchanges, peer-to-peer transfers, and self-custody wallets that report to no one. The rules are not retroactive, so years of past activity remain dark, making it a significant challenge for tax offices.