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Once CARF is implemented, no token holder will be able to escape.
In May 2026, the Hong Kong Legislative Council passed the Taxation (Amendment) (Automatic Exchange of Information) Ordinance,For the first time, crypto assetsIncorporated into the CRS framework (known in the industry as “CRS 2.0” or “CARF”).
As of August 2026,Hong Kong, Singapore, Japan, South Korea, the United Kingdom, Switzerland, Ireland, CanadaA total of 8 jurisdictions have enacted legislation or initiated legislative proceedings.
First Data Exchange Window:2028 (based on 2027 data)The
In short: your current USDT, BTC, and ETH positions, as well as your trading history over the past year,In two years, all of them will end up back on the desk of the National Tax Administration.The
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What information will be exchanged?
Personal Identification Information: Name, address, tax residency, TIN, date of birth.
Account Information: Exchange account opening records, KYC documents, and wallet address clustering.
Transaction and Balance Information: Annual purchase/sale amounts, year-end market value of holdings, and all types of digital assets.
Scope of the Reporting Entity: Licensed exchanges (Coinbase, Binance, OKX), licensed virtual asset trading platforms in Hong Kong, SFC-regulated stablecoin issuers, and self-custody wallet service providers with assets under management exceeding $50,000.
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Penetration of the Three-Tier Architecture
Layer 1 – Exchanges. The user's cryptocurrency holdings on the exchange have been fully reported.
Layer 2 – On-chain wallets. Cluster analysis of addresses on public blockchains such as Bitcoin and Ethereum has achieved a real-name address attribution identification rate of over 80%.
Level 3 – Offshore Structures. Indirect ownership through BVI and Cayman Islands companies + offshore accounts,Piercing the corporate veil to reach the ultimate natural person, The “Beneficial Owner Declaration” in the CSRC report must be completed.
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Three Types of Response Strategies
Strategy 1: Report small amounts in compliance with regulations. If the value of holdings is less than 1 million RMB and the holdings are located in a single jurisdiction, and if they are voluntarily reported to the local tax authority, such information does not constitute ”new information” under the CRS, and there is no obligation to pay additional taxes.
Strategy 2: Tax Planning for Long-Term Holders. Some jurisdictions (such as Portugal and Italy) have policies offering ”tax-free status for holdings of four years or more,” so it is important to plan for cross-jurisdictional assets as a whole.
Strategy 3: Get your legal status in order first. If you have obtained Hong Kong residency or overseas tax resident status, file your taxes in accordance with local tax laws to avoid the risk of having ”dual status” in mainland China.
If you’re facing a similar situation—where your crypto assets are subject to the CRS and you can’t simply ”liquidate your holdings and move them overseas”—feel free to scan the QR code to contact Qicaiying’s online customer service (WeChat/Phone: 18620388671), and we’ll help you thoroughly review your tax residency status and portfolio structure.
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