The Cayman Islands Government has confirmed that the Crypto Asset Reporting Framework ("CARF") and the amended Common Reporting Standard ("CRS"), widely referred to as CRS 2.0, will come into effect on 1 January 2026, with first filings due in 2027.
This announcement follows the earlier consultation on draft CARF regulations and marks the move to a finalised international tax transparency framework for digital assets and financial accounts.
CARF key points
- Reporting Crypto Asset Service Providers must identify users and apply due diligence procedures.
- Reportable transactions include exchanges between crypto assets and fiat currencies, exchanges between different crypto assets, and transfers of relevant crypto assets.
- The scope captures exchanges, intermediaries, trading platforms, brokers, dealers and operators of crypto asset ATMs.
CRS 2.0 key points
- The 2025 amended CRS now captures electronic money products, central bank digital currencies and indirect crypto asset exposure through derivatives and investment structures including certain arrangements where crypto exposure is held via financial products or investment vehicles. For further background, see our update on CRS 2.0.
- The changes are designed to enhance tax transparency and align the CRS with CARF to minimise duplicative reporting.
- Operational refinements include strengthened due diligence requirements and revised registration timelines for Financial Institutions with heightened validation expectations for self-certifications.
- The Principal Point of Contact ("PPoC") must now be located in the Cayman Islands, narrowing the previous allowance for a PPoC in any jurisdiction. Transitional relief permits existing registered Cayman Islands Financial Institutions without a local PPoC to submit a change form by 31 January 2027 to nominate a Cayman Islands-based PPoC.
Implementation and next steps
- CARF and CRS 2.0 will apply for the 2026 calendar year, with first filings due in 2027.
- Additional guidance and practical resources from the Department for International Tax Cooperation (DITC) are expected throughout 2026 to support industry readiness including further detail on operational requirements and data-quality standards.
The Tax Information Authority (International Tax Compliance) (Crypto-Asset Reporting Framework) Regulations, 2025 and the Tax Information Authority (International Tax Compliance) (Common Reporting Standard) (Amendment) Regulations, 2025 have been published, accompanied by initial guidance.
Originally published 8 December 2025
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