Q&A: How Will the New CARF Tax Regulations Affect Chinese Crypto Investors? The OECD's CARF (Crypto Asset Reporting Framework) is the crypto version of CRS, enhancing cross-border tax enforcement through international information exchange. 54 countries have signed on, including tax havens like the Cayman Islands and the UK. Hong Kong is expected to legislate in 2026, start collecting data in 2027, and begin exchanges in 2028. Mainland China has not signed, creating a tax vacuum, but crypto gains still need to be taxed. Converting to fiat currency or cross-border transfers may trigger tax recovery, so high-net-worth individuals should plan ahead. While existing assets can theoretically be traced after CARF implementation, data before signing is usually not exchanged. Actual recovery depends on the information chain and enforcement efforts. Hong Kong residents benefit from low taxes, no capital gains tax, and generally no additional taxes on crypto transactions, but they should be aware of salary tax and foreign trade settlement rules. Reasonable and compliant planning is recommended; long-term holdings with unrealized gains typically do not incur taxes. CARF mainly focuses on regulating the circulation of crypto and fiat currencies and on-chain transactions. Read more: