Chainalysis estimates potentially taxable crypto activity at $457 billion

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Chainalysis estimates taxable crypto

U.S. leads in potentially taxable crypto activity

The U.S. accounted for approximately $112.6 billion in potentially taxable activity. Of this amount, $64.6 billion came from payments, $30.1 billion from realized gains, and another $17.9 billion from various forms of crypto-related income.

North America ranked first among regions with $134.6 billion in activity. The European Union came second with $125.1 billion, followed by East Asia with $54.7 billion. Among individual countries, the U.S. was followed by Germany with $24.1 billion, China with $21 billion, the U.K. with $19.4 billion, and India with $19 billion.

Potentially taxable crypto activity by category and region in 2025. Source: Chainalysis.

Potentially taxable activity does not mean taxes are actually owed on the entire amount. Tax rules vary by jurisdiction and may include exemptions for certain transactions or types of income.

CARF covers only 14% of on-chain activity

The OECD-developed Crypto-Asset Reporting Framework provides for the automatic exchange of information about crypto transactions between tax authorities in different countries. It primarily applies to centralized exchanges, brokers, and certain wallet providers that are required to collect information about their customers and transactions.

However, according to Chainalysis, CARF-related events account for only 14% of identified potentially taxable on-chain activity. The remaining 86% includes decentralized exchanges, P2P transfers, on-chain income, and payments. A significant share of activity involving self-custodied crypto assets also remains outside the framework’s practical reach.

The first 48 jurisdictions, including European Union countries and the U.K., began collecting additional data under CARF on January 1, 2026. Most participating jurisdictions are expected to begin exchanging the collected information internationally in 2027.

The challenge of regulating activity through intermediaries also remains relevant to broader crypto market regulation. For example, delays surrounding the Clarity Act in the U.S. have intensified debate over whether the bill gives an advantage to large exchanges, brokers, and custodians over crypto’s peer-to-peer model.

Critics of the bill argue that regulation built around intermediaries may fail to adequately account for decentralized systems. CARF faces a similar challenge: the absence of a centralized operator in many DeFi protocols makes traditional reporting requirements more difficult to apply.

We previously reported that the CFTC continues to work on cryptocurrency regulation in the U.S. amid the Clarity Act’s difficulties in the Senate. The regulator’s actions could determine some of the rules for the U.S. market even before Congress completes work on comprehensive crypto legislation.

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