I have heard many rumors recently claiming that starting from 2027, exchanges will automatically report user transaction data to tax authorities, which has indeed caused some panic. I have verified this, and the truth is somewhat mixed.

Let's first look at the part that "does indeed exist" — the CARF framework.

CARF stands for Crypto-Asset Reporting Framework, which is simply a global automatic exchange system for tax information. This is not a conspiracy theory; it is a real regulatory measure that is currently being implemented. Regulatory authorities in various countries require compliant exchanges to collect users' tax identification information and then perform cross-border automatic exchanges between signing countries.

However, there is an important "misinterpretation" here — not everyone is included.

Many people panic upon hearing this news, but in reality, it depends on your situation: For users in Mainland China, we are not part of the CARF signatory members, so your tax information will not automatically flow to domestic tax authorities. Hong Kong is different; Hong Kong is a CARF signatory region, and its tax residents do need to start preparing relevant matters sooner.

Regarding the timeline, many details are easily overlooked.

The CARF framework requires signatory countries to start collecting user data from 2026, with the first cross-border automatic exchange happening in 2027. The implementation timeline varies for each platform, depending on their registration location and compliance strategy. Therefore, 2027 is not a specific time when an exchange suddenly activates this mechanism, but rather a synchronized milestone at the international level.

Overall, this policy is indeed changing the industry landscape, but the impact varies by region, so there's no need for overinterpretation.