Crypto firms (VASPs) in Jersey and Mauritius keep an eye on OECD's Crypto-Asset Reporting Framework (CARF),

Both Jersey and Mauritius are signatories to the OECD's Crypto-Asset Reporting Framework (CARF), which aligns closely with the EU's DAC8 directive in terms of reporting requirements and timelines for crypto service providers.

This means crypto firms in these jurisdictions will experience parallel effects from DAC8's implementation, even though neither is an EU member state.

• While DAC8 directly targets EU entities, its integration with CARF means that Jersey and Mauritian crypto firms will face heightened scrutiny and costs starting in 2026, thereby fostering greater transparency but also challenging operational agility.
• Firms should prepare by reviewing their user bases and upgrading systems promptly.

Below is a breakdown of the key impacts, focusing on compliance, operations, and broader implications.

Compliance Obligations and Costs

• Mandatory Data Collection and Reporting:
• Starting January 1, 2026, crypto service providers (e.g., exchanges, brokers, and dealers) in Jersey and Mauritius must collect user data, including tax residency, Taxpayer Identification Numbers (TINs), and transaction details.
• This data will be reported annually to local tax authorities (Revenue Jersey or the Mauritius Revenue Authority), which will then exchange it automatically with participating jurisdictions, including EU member states.
• Firms serving EU users face additional direct obligations under DAC8, requiring them to register with an EU member state and share data, even if they are based outside the EU.
• Increased Administrative Burden:
• Providers will need to implement robust KYC (Know Your Customer) processes, verify user tax residencies, and report aggregated transaction data (e.g., exchanges between crypto and fiat, crypto-to-crypto trades, transfers over €50,000, staking income, and certain NFTs).
• This could raise operational costs significantly, including investments in IT systems, legal expertise, and staff training.
• Smaller firms may struggle more, potentially leading to consolidation in the sector.
• Timelines Align with DAC8:
• Both jurisdictions aim for first information exchanges in 2027, mirroring DAC8's schedule.
• Jersey has already launched a public consultation on domestic legislation, with rules expected to be debated in late 2025.
• Mauritius is focusing on legal frameworks, IT infrastructure, and data protection for CARF rollout.

Operational and Business Impacts

• Effects on User Base:
• Enhanced transparency may deter privacy-focused users, potentially reducing transaction volumes or prompting shifts to non-participating jurisdictions.
• However, it could attract institutional investors seeking regulated environments, boosting legitimacy for firms in these offshore financial hubs.
• Cross-Border Exchanges:
• As participating jurisdictions, Jersey and Mauritius will receive crypto transaction data from EU providers about their own residents, aiding local tax enforcement.
• Conversely, their firms must report on foreign users (including EU residents), which could complicate operations for providers with international clientele.
• Risk of Non-Compliance Penalties:
• Failure to adhere could result in fines, reputational damage, or exclusion from exchanges with the EU and other CARF participants.
• This is particularly relevant for Mauritius, which has emphasised data protection in its implementation plans.

Broader Economic Implications

• Tax Revenue and Enforcement:
• The changes support efforts to curb tax evasion in crypto, potentially increasing tax revenues for Jersey and Mauritius by closing loopholes.
• This aligns with their existing participation in the OECD's Common Reporting Standard (CRS) for traditional assets.
• Competitive Positioning:
• As early adopters of CARF, these jurisdictions may strengthen their appeal as compliant offshore centres for crypto businesses.
• the added regulations could slow innovation or increase barriers to entry compared to less-regulated regions.
• Global Alignment:
• DAC8's focus on EU cooperation indirectly pressures non-EU firms via CARF harmonisation, making compliance a global norm rather than an EU-specific issue.

Overall, while DAC8 directly targets EU entities, its integration with CARF means that Jersey and Mauritian crypto firms will face heightened scrutiny and costs starting in 2026, thereby fostering greater transparency but also challenging operational agility.

Firms should prepare by reviewing their user bases and upgrading systems promptly.

Sources

Here is a compiled list of relevant sources on the impact of DAC8 and CARF on Jersey and Mauritian crypto firms, based on the information I referenced. I've included unique sources from recent searches, with titles, brief descriptions, and direct web links for easy access. These cover compliance, reporting obligations, and broader implications for offshore jurisdictions like Jersey and Mauritius.

Jersey-Specific Sources

• Crypto-Asset Reporting Framework and expansion of the Common Reporting Standard, Government of Jersey official page on CARF implementation, including timelines and obligations for crypto service providers. Link: https://www.gov.je/TaxesMoney/InternationalTaxAgreements/IGAs/pages/cryptoassetreporting.aspx
• How DAC 8 affects crypto assets in investment funds. Insights from Ogier on DAC8's reporting requirements for crypto in funds, with implications for Jersey-based entities. Link: https://www.ogier.com/news-and-insights/insights/how-dac-8-affects-crypto-assets-in-investment-funds/
• Introducing CARF - the OECD's Crypto-Asset Reporting Framework, a JD Supra article explaining CARF's global reach, including effects on jurisdictions like Jersey, aligning with OECD standards. Link: https://www.jdsupra.com/legalnews/introducing-carf-the-oecd-s-crypto-5198891/

Mauritius-Specific and Global Sources (Including Mauritius Context)

• PwC Global Crypto Tax Report 2024: PwC report comparing CARF and CRS, with discussions on implementation in non-EU jurisdictions like Mauritius. Link: https://www.pwc.com/ee/en/press-room/news-and-articles/pwc-global-crypto-tax-report-2024.html
• Crypto-Assets and CRS Compliance: DAC 8 redefines the rules. PwC Luxembourg newsletter on DAC8's expansion to crypto providers, relevant for Mauritius as a CARF signatory. Link: https://www.pwc.lu/en/newsletter/2025/crypto-assets-and-crs-compliance.html
• Demystifying CARF and DAC8 Regulations: Taxbit blog breaking down CARF/DAC8 compliance challenges for global crypto firms, including offshore hubs like Mauritius. Link: https://www.taxbit.com/blogs/demystifying-carf-and-dac8-regulations/

General Sources on DAC8/CARF Impacts (Applicable to Both Jurisdictions)

• Crypto-Asset Reporting Framework (CARF/DAC8) Regnology overview of CARF and DAC8, highlighting reporting for non-EU firms interacting with EU users. Link: https://www.regnology.net/en/resources/regulatory-topics/crypto-asset-reporting-framework-carfdac8/
• DAC8 and CARF present extensive reporting challenges for crypto platforms. RSM US tax alert on global obligations starting 2026, affecting firms in signatory jurisdictions. Link: https://rsmus.com/insights/tax-alerts/2025/dac8-and-carf-present-extensive-reporting-challenges-for-crypto-platforms.html
• CARF, MiCA, DAC 8, the Travel Rule move towards greater transparency, CIAT article on global crypto transparency, including CARF's role for jurisdictions like Jersey and Mauritius. Link: https://www.ciat.org/carf-mica-dac-8-the-travel-rule-move-towards-greater-transparency-in-the-crypto-asset-market/?lang=en
• The impact of CARF on the global cryptocurrency industry. Thomson Reuters post on CARF's transparency effects, with parallels to DAC8 for offshore crypto sectors. Link: https://www.thomsonreuters.com/en-us/posts/corporates/carf-global-cryptocurrency/
• DAC8 and CARF: the cornerstones of tax transparency in the crypto market. BankingHub interview on competitive impacts for crypto companies under DAC8/CARF. Link: https://www.bankinghub.eu/blog/dac-8-carf-tax-transparency-crypto-market-cointracking
• Tax Solutions Digital Assets OECD CARF S&P Global resource on CARF/DAC8 compliance for digital asset firms worldwide. Link: https://www.spglobal.com/market-intelligence/en/solutions/resources/tax-solutions-digital-assets-oecd-carf
• DAC8 - Taxation and Customs Union European Commission official page on DAC8, explaining exchanges with participating jurisdictions. Link: https://taxation-customs.ec.europa.eu/taxation/tax-transparency-cooperation/administrative-co-operation-and-mutual-assistance/directive-administrative-cooperation-dac/dac8_en
• Global implementation of the crypto-asset reporting framework PwC PDF on CARF's worldwide rollout, including challenges for non-EU signatories. Link: https://www.pwc.com/gx/en/tax/newsletters/tax-policy-bulletin/assets/pwc-a-significant-milestone-global-implementation-of-the-carf.pdf
• Europe Crypto Tax Guide 2025: Regulations & Compliance Coincub guide on DAC8/CARF enforcement in Europe and aligned regions. Link: https://coincub.com/europe-crypto-tax-guide/

These sources are up-to-date as of the current date (September 26, 2025) and represent a balanced view from official, advisory, and industry perspectives.