Here is a summary of the key points regarding CARF (Crypto Asset Reporting Framework).

**What exactly is CARF?**

In simple terms, it is an international tax cooperation framework. Through this system, tax authorities in various countries can automatically access the transaction records, holdings, and related financial data of their residents' crypto assets. In short, it gives tax agencies an "invisible eye" on activities in the crypto space.

**Why develop this?**

The background is clear — traditional finance has long had the CRS (Common Reporting Standard) framework, enabling the international flow and transparency of bank and brokerage account information. However, crypto assets have remained an information silo, making it difficult for tax authorities to obtain data. CARF aims to fill this gap.

**What are the key differences?**

CRS deals with account information from traditional financial institutions (banks, securities firms), while CARF is specifically targeted at the crypto asset ecosystem. In other words, one monitors fiat currency channels, and the other tracks the transaction chains of tokens. For traders, this means holdings and counterparty information could be included within the regulatory scope of tax authorities in various countries.