News

Regulations Now Published on CARF and CRS

28 November 2025   |   By: Matthew Yates     

Regulations to implement two international tax reporting frameworks in the Cayman Islands, the Crypto-Asset Reporting Framework (CARF) and amendments to the Common Reporting Standard (CRS), were published yesterday, Thursday, 27 November in the Cayman Islands Legislation Gazette.

Taken together, CARF and the amended CRS build on existing tax transparency frameworks and seek to prevent the use of virtual assets for tax avoidance and evasion.

Specifically, the Tax Information Authority (International Tax Compliance) (Crypto-Asset Reporting Framework) Regulations, 2025 helps to facilitate the automatic exchange of information on transactions in crypto-assets, including payment tokens (e.g. stablecoins and Bitcoin), utility tokens, certain non-fungible tokens, and security tokens. 

The CARF framework requires the collection, reporting and exchange of information on the customers of crypto-asset service providers. It is intended to support the CRS on the automatic exchange of financial account information, which came into effect in the Cayman Islands in 2016. 

The Tax Information Authority (International Tax Compliance) (Common Reporting Standard) (Amendment) Regulations, 2025 will bring certain electronic money products and central bank digital currencies within the scope of CRS. Changes ensure that indirect investments in crypto-assets through derivatives and investment vehicles are now covered by the CRS.

Both the CARF and amended CRS frameworks will be implemented in 2026. Entities in scope will complete their first reporting cycles in 2027 by submitting their 2026 information to the Department for International Tax Cooperation. 

The Cayman Islands will complete its first exchanges with partner jurisdictions in 2027.