Crypto Privacy Era Concludes as IRS Integrates into International Tax System
- The White House proposes IRS access to offshore crypto transactions via OECD's CARF framework to combat tax evasion and align with global standards. - CARF, supported by 72 countries including major economies, will enable cross-border data sharing while exempting DeFi transactions from new reporting rules. - U.S. crypto exchanges will report detailed transactions to IRS from 2026, marking a shift toward transparency as markets react with price volatility. - Critics raise privacy concerns over expanded IR
The White House is moving forward with a plan that would allow the Internal Revenue Service (IRS) to monitor cryptocurrency transactions by U.S. taxpayers on overseas platforms. This initiative is intended to bring the U.S. in line with international tax practices and combat global tax avoidance. The proposal, which was sent to the Office of Information and Regulatory Affairs last week,
CARF, which is scheduled for worldwide rollout in 2027,
Experts anticipate that CARF will reshape the global crypto landscape by boosting transparency and reducing opportunities for tax evasion.
Within the U.S., the IRS is also gearing up for tighter regulations.
The proposal is under review as the IRS faces leadership challenges. President Donald Trump recently rescinded his nomination of Donald Korb, an experienced tax lawyer, for the position of IRS chief counsel, raising concerns about the agency’s readiness to handle complex regulatory changes. Nonetheless,
The changing regulatory landscape has already influenced the value of leading cryptocurrencies, with
Opponents warn that expanding IRS oversight could threaten user privacy, particularly for those using self-custody wallets outside the traditional financial system. Supporters, however, argue that these steps are necessary to stop tax evasion in a sector where assets can be moved instantly across borders.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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