Hong Kong’s crypto industry is warning that the city’s planned adoption of new global tax reporting rules could produce unintended consequences if regulators do not adjust how the framework is applied in practice. The concerns center on the Crypto-Asset Reporting Framework (CARF), a standard developed by the Organisation for Economic Co-operation and Development to enable the automatic cross-border exchange of tax information related to crypto-asset transactions. Hong Kong officials say the CARF is need ...

Core Insights - Nigeria is implementing new tax law mechanisms to make cryptocurrencies traceable using national IDs, specifically through the Nigerian Tax Administration Act (NTAA) 2025 [1][5] - The government plans to track crypto transactions in real-time by linking them to Tax Identification Numbers (TINs) and National Identification Numbers (NINs) [1][2] Tax Tracking Mechanism - The new method allows tax authorities to monitor crypto transactions without directly accessing the blockchain, by matching crypto flows with income declarations and tax records [2][5] - Crypto exchanges and service providers are mandated to collect and report clients' TINs and NINs, expanding the identity tracing system to the crypto ecosystem [3][4] Regulatory Framework - The current tax law enables authorities to track crypto flows from exchanges to individuals and reported income without complex blockchain surveillance infrastructure [5] - Nigeria's approach aligns with the OECD's Crypto-Asset Reporting Framework (CARF) for global tax transparency [5] Cryptocurrency Adoption - Nigeria ranks as one of Africa's top cryptocurrency adopters, with an estimated market value gain of $92.1 billion between July 2024 and June 2025 according to Chainalysis' 2025 Global Adoption Index [6] - The Central Bank of Nigeria (CBN) has formed a task force to explore stablecoin adoption amid slow uptake of the eNaira and public skepticism regarding its performance [7]

Core Insights - Digital asset users are increasingly concerned about the complexities of filing crypto taxes as on-chain activity rises, coinciding with the adoption of the Crypto-Asset Reporting Framework (CARF) aimed at improving cryptocurrency tax oversight [1]. Group 1: IRS Crypto Tax Reporting - The IRS classifies digital assets as property, necessitating the reporting of income and capital gains from various transactions, including sales, service payments, staking, and airdrops [2]. - Holding cryptocurrency does not trigger a taxable event; taxation occurs only when the asset is sold, resulting in realized gains [3]. - For the 2025 tax year, the standard IRS filing deadline is April 15, 2026, with an extension available until October 15, 2026, applicable only to filing, not payment [4]. Group 2: Challenges in Filing Crypto Taxes - Despite clear tax guidance, the execution of filing remains complex, particularly for investors with high transaction volumes who must reconcile activities across various platforms and wallets [5]. - Errors in transaction classification or cost basis calculations can significantly impact reported gains and losses, posing challenges for high-frequency traders [5]. - The burden of proof lies with the taxpayer, emphasizing the importance of maintaining accurate records to avoid potential penalties [6]. - A notable example includes an investor named "Crypto Safe," who reported executing over 17,000 transactions across multiple blockchains in 2025 [6].

Core Viewpoint - Hong Kong is initiating a public consultation to implement the OECD's Crypto-Asset Reporting Framework (CARF) and amend the Common Reporting Standard (CRS), aiming for automatic exchange of crypto tax information by 2028 [1]. Group 1: Legislative and Regulatory Framework - The government plans to amend the Inland Revenue Ordinance to implement CARF and the amended CRS, demonstrating a commitment to combat cross-border tax evasion [2]. - The automatic exchange of information will be reciprocal with partner jurisdictions that meet confidentiality and security standards, with the amended CRS set for implementation in 2029 [2]. - The CARF was published by the OECD in 2023 in response to the rapid growth of the digital asset market, providing a framework for automatic exchange of crypto transaction tax information [3]. Group 2: Enhancements and Compliance Measures - The new framework includes digital financial products and enhanced reporting requirements, addressing gaps in traditional financial account information exchange [4]. - The CARF builds on the existing CRS infrastructure, applying similar transparency standards to crypto assets that process billions in trading volume across licensed exchanges in Hong Kong [5]. - The government proposes mandatory registration for financial institutions to improve identification, alongside increased penalties and enhanced enforcement mechanisms [5]. Group 3: Strategic Context - The consultation occurs as Hong Kong balances the need for digital asset innovation with compliance to international regulatory standards [7]. - The city is pursuing aggressive fintech expansion through the "Fintech 2030" strategy, focusing on data, artificial intelligence, resilience, and tokenization under the DART framework [7].

Core Insights - Brazil's crypto market is experiencing significant growth, with reported transactions reaching between $6 billion and $8 billion monthly, potentially rising to $9 billion by 2030 if current trends continue [1][2] - The majority of these transactions are now dominated by stablecoins, which account for up to 90% of reported transactions in some months, indicating a shift away from Bitcoin [2] - Brazil's tax authority, Receita Federal, is implementing a new reporting system called DeCripto, set to replace existing rules by July 2025, to better track the growing crypto economy [3][5] Regulatory Changes - The new DeCripto system will be based on the Crypto-Asset Reporting Framework (CARF) developed by the OECD, allowing for automatic exchange of tax information between jurisdictions [4] - Under DeCripto, exchanges will be required to categorize transactions into specific types, including crypto-to-fiat trades and transfers to unhosted wallets, with data collection starting in January 2025 [5] - Brazil's central bank is also introducing extensive crypto regulations, establishing a licensing regime for crypto service providers and requiring them to hold between $2 million and $7 million in capital [6] Compliance Requirements - Companies must comply with the new regulations within a nine-month window, or they risk being barred from operating in Brazil [7]

Regulatory Compliance - UK's HMRC requires crypto exchanges to collect full transaction data from all UK users starting January 1, 2026 [1] - HMRC will receive the data in 2027 to cross-check returns and curb crypto-related tax evasion [1] - The framework aligns with the OECD's Crypto-Asset Reporting Framework (CARF) [1] Global Adoption - CARF is already being adopted in the EU, Canada, Australia, Japan, and South Korea [1]

Group 1 - The Trump administration is moving towards adopting a global framework for crypto tax compliance, specifically the Crypto-Asset Reporting Framework (CARF) [1][3][7] - CARF, established by the OECD in 2022, aims to facilitate the automatic exchange of crypto-asset information among participating countries, addressing concerns about U.S. competitiveness in the crypto market [3][4] - A significant portion of the President's Working Group on Digital Asset Markets' report focused on tax compliance, highlighting the need for coordinated reporting rules to benefit U.S. exchanges [3][4] Group 2 - Current crypto tax compliance in the U.S. is low, with only about 25% of crypto investors reportedly meeting their tax obligations voluntarily, according to an IRS review in 2023 [6] - The U.S. is preparing for mandatory exchange reporting starting in the 2025 tax year, requiring centralized crypto exchanges to report taxable transactions to both the IRS and customers using Form 1099-DA [7][8] - The administration emphasizes that while implementing CARF, it should not impose excessive burdens on decentralized finance [5]

Regulatory Landscape - Finland plans to implement its domestic Crypto-Asset Reporting Framework (CARF) starting in 2026 [1] - Finland is becoming one of the first EU countries to move ahead with CARF [1] - The OECD-led standards will require crypto exchanges to begin data collection in 2026 [1] - Global information exchange across over 50 countries is expected by 2027 [1]

Regulatory Compliance - South Korea to adopt OECD's Crypto-Asset Reporting Framework (CARF) [1] - Data sharing to commence next year, with the system fully operational by 2027 [1] Data Exchange - Foreign investors' crypto transactions on South Korean exchanges (e.g, Upbit, Bithumb) will be shared with other countries [1] - Korean residents' overseas crypto trades will be reported to the National Tax Service [1]

Regulatory Compliance - UK crypto-asset service providers will be held to the same reporting standards as traditional financial institutions [1] - From January 1, 2026, UK-based crypto-asset service providers must collect and report user data to HMRC under the Crypto-Asset Reporting Framework (CARF), aligning with OECD standards [1] - Systems must be CARF-ready by December 31, 2025 [1] - First report due May 31, 2027, for 2026 activity [1] Scope of Regulation - Any platform that facilitates crypto transactions, including exchanges, brokers, and dealers, is affected [1] - Only crypto-assets used for payment or investment (not already under CRS) are in scope [1] Data Requirements - Required data includes individuals' name, date of birth, address, and tax ID, as well as entities' legal details and controlling persons [1] - Transaction data required includes type, units, and value [1] Penalties for Non-Compliance - Penalties for non-compliance can be up to £300 per user [1] - Senior management may be held liable for non-compliance [1]