DeFi is still out of scope for DAC8 and CARF, but AML enforcement trends suggest that may not last, according to Taxbit’s Colby Mangels.
The European Union’s new cryptocurrency tax reporting framework is built around what governments can immediately enforce, leaving decentralized finance (DeFi) outside its scope for now.
A former Organization for Economic Co-operation and Development (OECD) official who worked on the Crypto Asset Reporting Framework (CARF) said that this gap is a deliberate focus and not a blind spot.
“It doesn’t make sense to go to your grandma and ask her to give you all the tax reporting on crypto just because you happened to work with her over a certain period,” Colby Mangels, Taxbit’s global head of government solutions and a former OECD adviser, told Cointelegraph. “You really have to go to the intermediaries that are doing this as a business.”
