Starting in 2026, 67 countries will automatically share your crypto transaction data with tax authorities. Here’s how CARF and DAC8 work, what data is reported, and what you need to do now to stay compliant.
Crypto Tax Information Exchange: What You Need to Know About Reporting and Compliance
When you trade or hold cryptocurrency, your transaction data doesn’t just sit in your wallet—it can be shared with tax authorities through a crypto tax information exchange, a system where crypto exchanges report user activity to government agencies like the IRS or HMRC. Also known as financial data sharing for digital assets, this process is now standard in over 100 countries.
This isn’t science fiction. In 2023, the OECD’s Common Reporting Standard (CRS) expanded to include crypto exchanges, forcing platforms like Binance, Coinbase, and Kraken to collect and send user data: names, addresses, transaction volumes, and wallet addresses. If you bought Bitcoin on Coinbase in 2022 and sold it in 2024, that trade is now on file with your country’s tax office. You don’t need to be a high-net-worth trader for this to apply—anyone who traded, earned staking rewards, or received an airdrop is in scope.
What gets shared? Exchanges report crypto tax reporting, the structured submission of user trade history and income data to tax authorities. This includes buys, sells, swaps, and even rewards from DeFi protocols. The blockchain tax compliance, the set of legal and technical steps users must follow to meet tax obligations on crypto activity isn’t optional. Countries like the U.S., UK, Germany, and Australia now cross-check exchange data with your personal tax returns. If your Form 1099 says you sold $15,000 in Ethereum but your tax return says $0, you’re flagged.
And it’s getting tighter. New rules in 2024 require exchanges to report wallet-to-wallet transfers above $10,000. That means if you sent ETH from Coinbase to a DeFi protocol, that’s now tracked. Even airdrops—like the Flux Protocol giveaway—are considered taxable income the moment you receive them. The IRS doesn’t care if you didn’t sell it. You still owe tax on its value at receipt.
So what do you do? You don’t need to hide. You need to document. Track every transaction. Use a crypto tax tool. Know the difference between capital gains and ordinary income. And understand that the days of flying under the radar are over. The system is built, it’s active, and it’s watching.
Below, you’ll find real examples of what happens when people ignore this—like the fake airdrops pretending to be tax-related, or the exchanges that actually comply with reporting rules. You’ll also see how some tokens, like FLUX or RDNT, show up in tax reports even when users think they’re "just playing." This isn’t theory. It’s your financial reality. Let’s break it down.