US Moves to Enforce CARF by 2027 — Global Crypto Reporting, VASP KYC and IRS Matching
The US Treasury has sent the OECD-backed Crypto-Asset Reporting Framework (CARF) regulations to the White House, marking a formal step toward adopting global crypto reporting standards by 2027. CARF will require Virtual Asset Service Providers (VASPs), including exchanges and custodial services, to collect comprehensive KYC, tax residency and tax ID data and to annually report detailed transaction records — including sending and receiving wallet addresses — to users’ home jurisdictions. Reports under CARF will be transmitted to tax authorities (such as the IRS) rather than to individual users. Experts note CARF covers transfers and address activity in addition to sales, expanding the scope of reportable events. The IRS is expected to use advanced analytics to match CARF data against tax filings, increasing audit and enforcement risk for undeclared crypto activity. The rollout timeline targets initial enforcement in 2027 with broad international adoption across OECD members and roughly 70–90 participating jurisdictions. Separately, domestic US rules are tightening: from January 2026 US exchanges must comply with Form 1099-DA, which mandates detailed transaction reporting to the IRS. Market context: the news arrives amid recent Bitcoin price moves (recently trading around $80k–$90k). Primary keywords: CARF, crypto reporting, VASP, IRS, KYC.
Neutral
The announcement increases regulatory oversight rather than directly altering fundamentals of Bitcoin or other crypto tokens, so the immediate price impact is likely neutral. In the short term, enhanced reporting and higher audit risk could create selling pressure from risk-averse holders or reduce offshore flows, which may cause volatility or downward pressure. However, the enforcement timeline (targeted for 2027) and phased domestic measures (1099-DA from 2026) give markets time to adapt. Over the long term, clearer global reporting rules and stronger compliance could reduce illicit activity and increase institutional confidence in regulated markets, which may be mildly supportive for price stability and adoption. Therefore, the overall expected price effect on BTC is neutral with potential short-term volatility and mixed longer-term implications.