End of Privacy in Cryptocurrency as United States Adopts International Tax Standards
- The White House reviews a Treasury proposal to align U.S. crypto tax rules with the OECD's CARF framework, enabling IRS access to Americans' foreign crypto transactions. - CARF, adopted by 70+ jurisdictions including G7 nations, mandates automatic cross-border crypto transaction reporting to combat offshore tax evasion. - The framework would require foreign exchanges to report U.S. crypto holdings to the IRS, mirroring FATCA for traditional accounts while exempting DeFi transactions. - Domestic crypto ov
The White House has started an in-depth evaluation of a Treasury Department plan that would bring the U.S. in line with the international Crypto-Asset Reporting Framework (CARF). This initiative would allow the IRS to monitor Americans’ overseas crypto transactions and aims to reduce offshore tax avoidance. The draft regulations,
Established by the Organization for Economic Cooperation and Development (OECD) in 2022, CARF is an international pact requiring member states to automatically share digital asset information to fight tax evasion.
The Trump administration’s advocacy for CARF is detailed in a July document from the President’s Working Group on Digital Asset Markets. The report stressed that joining CARF would “deter U.S. taxpayers from shifting digital assets to foreign platforms” and help U.S. exchanges stay competitive worldwide
Within the U.S., the IRS has already increased its scrutiny of cryptocurrency activities. From 2026, centralized crypto exchanges will be obligated to report trades using Form 1099-DA, a requirement designed to boost tax reporting.
For Americans, the adoption of CARF could mark the end of anonymous crypto ownership. By 2027, those with digital assets on foreign exchanges may face the same level of IRS oversight as with traditional bank accounts, sharply limiting tax evasion opportunities. Still, privacy advocates and some in the crypto sector have
The proposed regulations are now pending final sign-off from White House officials, with implementation expected to align with the global 2027 timeline. If approved, this would represent a major transformation in U.S. digital asset oversight,
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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