OECD's Crypto-Asset Reporting Framework: What Does This Mean For Jersey?

Jersey is moving quickly to implement the OECD's Crypto-Asset Reporting Framework (CARF), marking a significant development for the island's financial and digital asset sectors. On 29 October 2025, the Minister of External Relations lodged draft regulations to incorporate CARF into Jersey law. This follows Jersey signing the Multilateral Competent Authority Agreement in November 2024 and committing to a common implementation timeline alongside other jurisdictions.

The proposed regulations amend existing Common Reporting Standard (CRS) rules to include CARF requirements. The aim is clear: align Jersey with global standards on tax transparency and automatic exchange of information for crypto-asset transactions.

Key dates for Jersey

• 1 January 2026: First CARF reporting period begins.
• 2027: First international exchanges of information expected.

Who is in scope?

CARF applies to entities that provide services enabling crypto-asset exchange or transfer on behalf of customers. In Jersey, this is expected to include Virtual Asset Service Providers (VASPs) registered under the Proceeds of Crime (Jersey) Law 1999. Examples of in-scope entities include:

• Crypto-asset exchanges
• Brokers and dealers facilitating crypto transactions
• Intermediaries offering transfer services

Not every business dealing with crypto will fall under CARF. For instance, investment funds holding crypto assets may be out of scope if investors do not directly execute, exchange, or transfer transactions. Conversely, businesses purchasing crypto assets for onward distribution may be captured. Each entity must review its activities against the definition of a Reporting Crypto-Asset Service Provider (RCASP).

What are the obligations?

Businesses identified as RCASPs will need to meet three core obligations:

1. Collect client self-certifications including tax residency and tax identification numbers.
2. Conduct due diligence to identify reportable customers and controlling persons.
3. Report annually to Revenue Jersey on relevant transactions.

Transactions covered include:

• Crypto-to-crypto exchanges
• Fiat-to-crypto and crypto-to-fiat exchanges
• Transfers of crypto assets, including to unhosted wallets

Exclusions?

Not all digital assets fall under CARF. Central Bank Digital Currencies and certain electronic money products are excluded, although they will be reportable under the expanded CRS rules. CARF focuses on decentralised assets that can be transferred without traditional intermediaries.

Next steps for Jersey businesses

With the first reporting period starting in January 2026, businesses should act now to:

• Assess RCASP status and determine whether their activities fall within scope.
• Implement compliance frameworks, including policies, procedures, and staff training for onboarding and reporting.
• Monitor updates from the Jersey Government and OECD to stay aligned with evolving requirements.

Failure to prepare could lead to compliance risks and reputational impact as global tax transparency standards tighten.

CARF represents a major shift for Jersey's crypto sector. The island's commitment to implementing these rules reinforces its position as a well-regulated jurisdiction. Businesses should prioritise readiness for the 2026 reporting cycle.