Starting January 1, 2026, 48 jurisdictions, including the UK and EU, will implement the OECD's CARF crypto reporting framework. This initiative requires service providers to collect and verify tax residency data, and submit annual transaction reports to local authorities, enhancing cross-border data sharing for countering financial terrorism (CFT) efforts. Lucy Frew from Walkers highlighted that exchanges will need to overhaul their KYC and AML processes to comply with the new requirements. Asher Tan of CoinJar noted that users should expect increased residency checks. While CARF does not introduce new taxes, tax experts emphasize its role in improving enforcement through machine-readable reports.