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A new era of global cryptocurrency transparency has officially begun, with the United Kingdom and 47 other jurisdictions enforcing strict new reporting rules as of January 1 to combat tax evasion.
While the “first wave” of countries has already started collecting transaction records according to the Financial Times, the Philippines has committed to joining the initiative’s second wave, with data exchanges scheduled to commence by 2028.
The First Wave: 48 Countries
New regulations known as the Crypto-Asset Reporting Framework (CARF), developed by the Organization for Economic Co-operation and Development (OECD), came into force this week for an initial group of 48 countries.
Starting January 1, major cryptocurrency exchanges operating in jurisdictions such as the UK, Brazil, Japan, and most EU member states are required to collect detailed transaction records. This includes:
- The identity and tax residency of users.
- The value of crypto assets sold or exchanged.
- Any profits made from transactions.
These collected records will be automatically shared between participating tax authorities starting in 2027, effectively closing the loop on investors attempting to hide digital assets offshore.
“This is the beginning of the end for crypto investors who thought they could invest and gain from crypto in secrecy from tax and other law enforcement agencies,” said Andrew Park, a tax investigations partner at Price Bailey, as reported by the Financial Times.
The Philippine Context: 2028 Target
While the Philippines is not part of the initial 2027 exchange group, it has been identified as a key participant in the framework’s expansion.
According to the latest OECD commitments, the Philippines is listed among 27 jurisdictions pledging to implement CARF in time to commence data exchanges by 2028. (Read more: DOF: PH to Adopt Crypto Tax Framework By 2028 to Combat Tax Evasion)
This places the Philippines alongside major regional crypto hubs and neighbors including:
- Singapore
- Hong Kong
- Thailand
- Malaysia.
Once implemented, the Bureau of Internal Revenue (BIR) would gain access to a global information-sharing network. This will allow it to see crypto income generated by Filipino tax residents on foreign platforms.
What is CARF?
The Crypto-Asset Reporting Framework (CARF) is a global standard designed to ensure that crypto assets are not used to evade taxes. It mandates that crypto service providers — such as exchanges and wallet providers — collect information on their users’ transactions and report it to tax authorities.
Overall, 75 countries have committed to the rules.
- 2027 Exchange: Includes UK, EU, Japan, Brazil, South Africa.
- 2028 Exchange: Includes Philippines, Singapore, Hong Kong, UAE, Australia.
- 2029 Exchange: The United States.
Why This Matters for Filipino Investors
The Philippines’ inclusion in the 2028 cohort provides a clear timeline for local investors and the industry.
- End of Anonymity: While there is a lead time of two years, the eventual implementation means that trading data from platforms in Singapore, Hong Kong, or Europe will eventually be visible to Philippine tax authorities.
- Regulatory Preparation: The timeline gives local regulators and exchanges time to upgrade their systems to comply with the complex reporting standards required by the OECD.
- Tax Compliance: Filipino investors using international platforms should be aware that their transaction history will effectively become transparent to the BIR once the data-sharing bridges are built in 2028.
This article is published on BitPinas: Global Crypto Tax Crackdown Begins; Philippines Committed to Data Exchange by 2028
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