Implementation of the International Cryptocurrency Tax Reporting Standard "CARF" Begins in Japan

An international standard for sharing cryptocurrency transaction information among national tax authorities, known as 'CARF (Crypto Asset Reporting Framework)', will be implemented in Japan starting January 1, 2026.

All users of domestic cryptocurrency exchanges will be required to declare their 'country of tax residence'.

Developed by the OECD (Organisation for Economic Co-operation and Development) in 2022, CARF aims to address international tax evasion and avoidance using cryptocurrency. It mandates exchange operators in each country to report the transaction information of non-residents to their local tax authorities, which is then automatically exchanged with the tax authorities of the residents' home countries.