Finland to mandate reporting of virtual asset transactions from next year

JH Kim

Summary

The Finnish government said it will introduce CARF by 2026 and will begin fully enforcing mandatory tax reporting for virtual asset transactions from next year.
It said that virtual asset exchanges and digital asset platform operators in Finland must report users' transaction details such as trading, transfers, staking rewards, and NFT transactions to the tax authorities.
The Finnish Tax Administration said the measure is part of global cooperation to ensure tax transparency and prevent tax avoidance.

Finland will begin fully implementing a system mandating tax reporting for virtual asset (cryptocurrency) transactions from next year.

On the 7th (local time), according to CryptoBriefing, a media outlet specializing in virtual assets, the Finnish government plans to adopt the Organisation for Economic Co-operation and Development (OECD)'s Crypto-Asset Reporting Framework (CARF) by 2026. CARF is an international standard designed to enable automatic exchange of virtual asset transaction data among tax authorities of different countries.

Accordingly, virtual asset exchanges and digital asset platform operators in Finland will be required to collect users' transaction histories and report them to the Finnish tax authorities. The reporting is expected to cover trading, transfers, staking rewards, and NFT transactions.

The Finnish Tax Administration said, "This measure is part of global cooperation to secure tax transparency and prevent tax avoidance," adding that "it will also align with the EU's digital asset tax rules (DAC8)."