How Crypto Taxation and Reporting Standards Are Changing Worldwide

This article was first published by Deythere.

On a global level, the pace of development around crypto taxation trends and reporting requirements continues to grow fast. Governments and international organizations are toughening regulations and increasing the demand for transparency among crypto exchanges and investors.

Almost 80% of the world’s largest economies now have formal crypto tax regulations, over 60 countries (including all G7 members) have agreed to the OECD’s Crypto-Asset Reporting Framework (CARF) that will allow governments to share data about cryptocurrency transactions.

Global Crypto Taxation Trends

Generally, nations are moving from a crypto-free mentality to outright taxation. In many nations today, cryptocurrency profits are considered as taxable capital gains or income. In the U.S., for instance, the IRS considers crypto sales and exchanges to count as taxable events (the same as with stock transfers).

Worldwide, at least 56% of countries now tax crypto transactions or income. Tax rates vary widely. In the United States, crypto is taxed as property at a top federal rate of 37 percent; in India it faces a flat 30 percent levy on gains.

For many countries in the UK and EU, crypto is taxed as capital gains (so usually 10-30% depending on income). Italy’s 2025 budget originally suggested a hike to crypto gains tax to 42%, but it was ultimately softened.

On the other hand, some jurisdictions continue to be more lenient. Germany exempts individual crypto-balance held over one year and the U.A.E. enforces 0% on crypto capital gains tax.

Country-by-Country Crypto Taxation Trends

Tax rates on cryptocurrency gains by the world’s largest economies are vastly different. Denmark plans to tax crypto gains at a 42% rate, for example, and Portugal has traditionally put the spotlight on 0% of capital gains taxes.

The following table sets out the current rates of income tax payable from employment in a number of jurisdictions: 

Emerging Reporting Standards and Compliance

The turn to taxing cryptocurrency has been accompanied by new reporting requirements. The OECD’s Crypto-Asset Reporting Framework (CARF) applies the international Common Reporting Standard to crypto.

Under CARF rule, participating countries’ crypto exchanges and custodians are required to obtain user tax IDs and report detailed transaction information to the country’s tax authorities.

More than 60 jurisdictions (each G7 country and most G20 countries) have signed up to CARF, with many committing to share crypto data by 2027. These actions are indicative of wider trends in crypto taxation towards transparency and compliance.

Tax reporting rules are also getting more strict in the United States. Beginning for the tax year 2025, U.S. brokerage firms were to send out the newly created Form 1099-DA for each crypto sale or exchange (reporting gross proceeds and also cost basis).

In April 2025, Congress struck down the requirement for decentralized finance (DeFi) platforms, so it’s now the case that reporting of margin trades will only be made via custodial exchanges in the form of a 1099-DA.

Likewise, DAC8 of the European Union’s Directive on Administrative Cooperation will enter into application Jan. 2026 (with reporting starting in 2027), which will require any NLS targeted “provider” anywhere worldwide serving EU clients to report the data associated with crypto transactions.

In brief, the world’s governing bodies are coalescing around mandates for platforms to gather KYC and tax details and also report on crypto sales and trades.

Typical Problems Filing Crypto Taxes

Crypto tax compliance continues to be a thorn in the side of many investors. Ninety percent of crypto users surveyed in 2025 reported confusion about tax rules; complexity was the top pain point for 34%.

Almost half (45%) said they struggled to file their taxes because the rules are inconsistent across countries, with more than a third engaged in cross-border trades and tax liabilities in more than one country.

These challenges are mirrored in enforcement trends. US crypto tax audits surged 52 percent in 2024-2025 as authorities stepped up scrutiny.

Overlapping rules also complicate record-keeping requirements. Taxpayers need to keep track of the cost basis for every swap and sale, and taxable events can include airdrops and staking rewards.

This degree of complexity has forced many investors to depend on special tax software or an advisor. Accurate reporting is becoming more important as global tax authorities access increasing amounts of crypto data.

Expert Take: Making Your Way Through Future Crypto Tax Legislation

These developments are pushing crypto into closer alignment with the more traditional tax world, according to experts. Sources observe that CARF is spearheading cryptocurrency toward a transparent and regulated future more palatable to institutions.

Under this view, as crypto businesses impose stricter reporting and KYC regulations; they will start to resemble more traditional financial institutions. Analyst forecasts that in 2030, crypto might be considered an entirely mainstream asset class, albeit with little “hiding” for profit.

But some industry watchers caution against a backlash to high taxes. For example, Denmark’s plan for a 42% mark-to-market tax on crypto has some critics referring to it as a “war on crypto.

Sources expect that although CARF may reduce anonymous activity, it may also bifurcate the market: one part highly regulated and another operating under a cloak of secrecy or in a decentralized manner.

Looking ahead, many experts anticipate that new tools and services could also emerge. Wallets that auto-report gains; cross-border tax clearinghouses; and AI-enabled analytics, which marry blockchain data with returns.

In any event, these crypto tax trends suggests that cryptocurrencies are going to eventually be treated like other assets, complete with regular tax forms and compliance measures.

Knowing what’s happening in terms of crypto tax regulations is essential for anyone involved in this industry.

Conclusion

Crypto taxation trends is heading towards full regulation and disclosure. CARF and DAC8 Governments globally are enacting digital asset tax regulations and implementing new reporting regimes such as CARF and DAC8.

Tax agencies close in by forcing platforms to issue standard tax forms and requiring exchanges to collect user tax identification numbers.

These events are a sign that crypto has definitively entered the tax limelight. Going forward, adapting crypto taxation trends will be essential for compliant investors and businesses.

Glossary

Crypto-Asset Service Provider (CASP)/RCASP: Firms such as cryptocurrency exchanges or wallet providers that enable crypto transactions. CASP (s) now have additional new reporting responsibilities under CARF/DAC8 to report user data to tax authorities.

CARF (Crypto-Asset Reporting Framework): An OECD-led global standard requiring crypto platforms in participating countries to report user crypto transaction data to tax authorities. 

DAC8 (Directive on Administrative Cooperation 8): EU directive (effective from 2026), which orders even non-EU crypto-asset service providers to report EU clients’ crypto activities to tax authorities in line with CARF. 

Capital Gains Tax (CGT): A tax on the profit from a sale or other disposal of an asset. A lot of countries tax CGT on crypto. For instance, in the UK CGT on crypto gains must be paid at 10% or 20%.

Mark-to-Market Tax System: A tax regime which requires reporting and taxation of unrealized gains for tax purposes on an annual basis, as if the assets had been sold. Denmark is also looking to pull this off for crytpo ( 42% on ALL gains, even losses).

Form 1099-DA: An IRS tax form that brokers use to report a customer’s crypto sales/exchanges. It will list gross proceeds as well as cost basis per trade.

KYC: An industry standard in which financial service providers check for the identity of a user.

CRS (Common Reporting Standard): An international agreement for automatic exchange of financial account data.

Frequently Asked Questions About Crypto Taxation Trends

What are the current international trends on crypto taxation?

The vast majority of major economies now tax gains from or income made off cryptocurrencies. In 2025, 78 percent of major countries have detailed crypto tax policies. New reporting requirements such as OECDs CARF and EUs DAC8 are being implemented globally, which will result in exchanges having to report users’ crypto transactions to the tax authorities. 

What do CARF and DAC8 mean for crypto users?

CARF (OECD standard) and DAC8 (EU directive), mandates the crypto platforms, to obtain the user tax IDs and report any crypto transaction. By 2027, any crypto exchange or wallet serving customers in countries that are members of CARF/DAC8 would be required to hand over full records of their buys, sells, transfers and other transactions. This means most crypto trades will be seen by tax authorities, and platforms are more likely going to offer help with tax reporting.

Is a cryptocurrency asset are subjected to tax?

Yes. Most crypto is treated as taxable, either in the form of property or of income, by most countries. For instance, the US taxes cryptos as much as 37% (federal on short-term gains), India has a flat levy of 30% on crypto gains and the UK charges from 10-20% (capital gains rates). Very few countries don’t tax personal income on crypto profits at all.

What transactions are considered to be taxable events?

Some of the most common taxable events occur when one sells crypto for fiat, trade one crpyto/coin for another, spend it on goods or services, receive staking or mining income and airdrops. Moving crypto between own wallets isn’t taxable, but anything sold or used as currency is usually taxed. 

References

Thomsonreuters
Rsmus
Theblock
Reuters
Coinlaw
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