The CARF rules were originally proposed in October 2022 and outline the scope of covered crypto assets, entities, and individuals subject to reporting and data collection requirements, transaction reporting criteria, due diligence procedures and relevant tax jurisdictions for exchange of information and reporting. The framework aims to achieve sufficient visibility on tax-relevant crypto asset transactions by collecting and exchanging information on transactions related to crypto assets annually.

CARF facilitates the automatic exchange of tax-related information on crypto-assets among tax authorities and is aligned with the Organization for Economic Cooperation and Development's (OECD) tax information exchange standards. The group of 48 signatory jurisdictions, acknowledging the swift growth of the crypto-asset market, commit to the incorporation of CARF into domestic law and the activation of exchange agreements. For those OECD member countries that are considering implementation of the CARF, will also proceed with relevant changes to the Common Reporting Standard (CRS) to ensure consistent implementation.

The CARF will focus on decentralised crypto assets, including stablecoins, certain non-fungible tokens (NFTs), derivatives and any digital representations of value that rely on a secured distributed ledger technology (DLT), ensuring reporting by entities engaging in transactions relating to crypto assets. The 48 signatory jurisdictions include major countries and territories worldwide, emphasising their commitment for global tax transparency.

Cyprus press release can be found here and the publication for Cayman Islands here.

The CARF rules and framework can be accessed here.

U.S. Department of Treasury also issued a statement and can be found here.