OECD Crypto Tax Framework Falls Short, Capturing Just 14% of Onchain Activity

The Organization for Economic Co-operation and Development (OECD) developed the Crypto-Asset Reporting Framework, or CARF, in 2022 to help tax authorities track cryptocurrency transactions across borders. However, a new analysis from blockchain intelligence firm Chainalysis reveals that this framework captures only about 14% of taxable onchain activity worldwide.

The study found that at least $457 billion in potentially taxable onchain activity took place globally in 2025, but most of it was not reported to tax authorities. The United States accounted for the largest share of any single country, with an estimated $112.6 billion in taxable activity, followed by Germany at $24.1 billion and China at $21 billion.

Chainalysis attributed the low reporting rate to CARF's focus on intermediaries that facilitate cryptocurrency transactions as a business, excluding decentralized finance (DeFi) platforms and private wallets. This means that tax authorities are missing out on 86% of taxable onchain activity, including decentralized exchange transactions, peer-to-peer transfers, and crypto-denominated payments.

To address this gap, Chainalysis suggested that tax agencies use blockchain analysis to follow transfers between wallet addresses and detect interactions with decentralized or foreign platforms. This method has already been used in tax investigations, such as the Italian authorities' tracing of over $1.1 million in alleged undeclared Ordinals gains.