As the digital asset landscape evolves, so too does the global regulatory framework governing it. Starting January 1, 2026, the OECD’s Crypto-Asset Reporting Framework (CARF) and the EU’s DAC8 directive will usher in a new era of tax transparency for digital asset platforms.
These regulations, designed to standardize and enhance reporting obligations for crypto-asset transactions, pose challenges for Reporting Crypto-Asset Service Providers (RCASPs) across 66 jurisdictions. Taxbit, a provider of automated tax and accounting solutions, expanded its platform to address these complexities, offering an enterprise-grade solution to streamline CARF and DAC8 compliance.
This strategic expansion positions Taxbit as a pivotal partner for digital asset platforms navigating the intricate web of global tax mandates.
CARF, finalized by the OECD in 2022, establishes a global standard for the automatic exchange of tax information on crypto transactions.
DAC8, its EU counterpart adopted in 2023, mandates implementation across all EU member states by December 31, 2025, with reporting obligations commencing in 2027.
These frameworks require RCASPs—entities facilitating crypto transactions, including brokers, trading platforms, and certain decentralized finance (DeFi) providers—to collect tax residency self-certifications, track transactions, and report aggregate data to tax authorities.
Unlike the Common Reporting Standard (CRS), which focuses on year-end balances, CARF and DAC8 mandate detailed transaction reporting throughout the year, capturing transfers to non-custodial “cold wallets” to prevent tax evasion.
This shift represents a structural overhaul of compliance obligations, demanding robust systems to manage high-volume, cross-border transactions.
Taxbit’s expanded platform addresses these challenges with a suite of tools designed for scalability and precision.
The Digital Self-Certification SDK simplifies user onboarding by enabling seamless tax residency self-certification, ensuring compliance without disrupting user experience.
The Automated Reporting Engine generates and files CARF and DAC8 XML reports, handling complex calculations and jurisdictional requirements with accuracy.
Real-time Insights Dashboards provide platforms with visibility into reporting status, helping identify gaps and mitigate risks.
With enterprise-grade security, including GDPR and SOC II compliance, Taxbit ensures encrypted data handling, fostering trust among users and regulators alike.
As Michelle O’Connor, Taxbit’s VP of Global Market Expansion, noted:
“Effective January 1, 2026, DAC8 and CARF regulations will reshape the digital asset landscape, marking a critical turning point for digital asset platforms.”
The platform’s capabilities extend beyond CARF and DAC8, supporting U.S. information reporting (W-9/8, 1099s, 1042-S), digital asset cost basis tracking, and compliance for marketplaces and gig platforms (DAC7, SERR).
This holistic approach enables enterprises to manage diverse regulatory requirements through a single system, reducing operational complexity.
PayPal, a prominent client, highlighted Taxbit’s impact:
“Taxbit allows us to further build customer trust by providing ease and reliability in the new realm of digital asset trading, education, and documentation to support tax obligations.”
This endorsement underscores Taxbit’s role in helping platforms stay ahead in a rapidly evolving market.
The extraterritorial reach of DAC8 adds further complexity, requiring non-EU RCASPs serving EU clients to register and report in an EU member state.
Penalties for non-compliance, ranging from €20,000 to €500,000, underscore the urgency of preparation.
Taxbit’s platform mitigates these risks by automating workflows, from data ingestion to report submission, and offering real-time analytics to ensure compliance.
As Erin Fennimore, VP of Tax Solutions at Taxbit, stated:
“The challenge is no longer just collecting and reporting tax data—it’s about transforming regulatory complexity into operational simplicity while preserving a frictionless user experience.”
Taxbit’s mission to enable digital assets for the global economy is evident in its leadership at industry events like the Digital Accord Summit during Paris Blockchain Week 2025.
By fostering collaboration between regulators, policymakers, and industry leaders, Taxbit is shaping a transparent and compliant digital asset ecosystem.
As 2026 approaches, platforms leveraging Taxbit’s solutions are positioned to turn compliance into a competitive advantage, ensuring accuracy, scalability, and readiness for future regulatory shifts.