Listen to me, the wave of global regulatory actions at the beginning of the year truly shocked me—48 countries almost simultaneously implementing crypto asset tax reporting systems. The long-standing approach of "on-chain transactions without withdrawals are invisible" is now completely outdated. Having immersed myself in this market for eight years, I believe 2026 will not be the end for crypto; instead, it could be a turning point for full compliance. Participants still relying on information gaps and gray-area operations will find it increasingly difficult to survive.

Let's start with the most direct impact. The OECD's promoted CARF framework officially took effect on January 1st. Major exchanges are now required to collect complete customer transaction data, identity information, and tax residency details. This is not voluntary but mandatory. The common tactics in previous years—opening anonymous wallets and fragmented transactions to hide profits—are now largely ineffective. Even more impressively, cross-border data sharing will commence in 2027, allowing tax authorities in 75 countries to exchange information. The regulatory encirclement will become tighter and tighter.

Here, I need to correct a common misconception. Many people think compliance equals bad news for the market, but this is a misconception that retail investors are prone to. From my perspective, compliance is precisely the prerequisite for large-scale institutional capital inflows. Data doesn't lie. Since the beginning of the year, CME Bitcoin futures open interest has rebounded by over 10%, surpassing the $10 billion mark again, roughly in sync with the changes in major exchanges' open interest. This reflects that institutions are quietly positioning themselves. The FASB in the US has long required crypto assets to be accounted for at market value, with unrealized gains directly recorded in the profit and loss statement. The old rigid rule that only allowed impairments but not appreciation has been changed, which naturally increases institutions' motivation to hold crypto assets.