Combined offering enables crypto exchanges, brokers, and custodians meet OECD’s global tax transparency requirements with zero-rejection accuracy
Sovos, the always-on tax compliance company, today announced that Label, a specialized provider of automated FATCA, CRS, and CARF compliance solutions, has joined the Sovos Partner Network. Label CARF + Sovos 1099-DA delivers a global solution for digital asset platforms to meet the OECD’s Crypto-Asset Reporting Framework (CARF) requirements, which mandate comprehensive reporting of crypto transactions beginning in 2027 for the 2026 tax year in participating jurisdictions.
As governments worldwide implement CARF to close tax transparency gaps in the digital asset ecosystem, crypto exchanges, brokers, custodians, and Virtual Asset Service Providers (VASPs) face unprecedented compliance complexity. The framework requires detailed reporting of client identities, transaction data across multiple categories, including crypto-to-fiat, crypto-to-crypto transfers, staking rewards, and retail payments. All reporting must meet strict validation and formatting requirements.
“Digital asset platforms are navigating an increasingly complex regulatory landscape, CARF reporting now joins existing obligations like 1099-DA, unclaimed property, and traditional tax information reporting,” said Wendy Walker, VP of Regulatory Affairs, Sovos. “Our partnership with Label combines our proven crypto tax compliance capabilities with their specialized CARF expertise. Together, we deliver a unified solution that addresses the full spectrum of digital asset reporting requirements.”
This partnership enables crypto exchanges, brokers, and custodians to meet OECD’s global tax transparency requirements without the complexity of building in-house CARF capabilities. Label’s solution features automated onboarding with tax self-certification collection and real-time validation, transaction aggregation across all crypto categories, and OECD CARF XML generation. The platform integrates seamlessly with existing FATCA and CRS compliance workflows, enabling financial institutions to manage global regulatory obligations from a single system.
“Building CARF compliance capabilities in-house is a significant undertaking for digital asset platforms, requiring specialized regulatory expertise, complex data aggregation, and precise XML formatting,” said Scott Nice, Chief Revenue Officer at Label. “We’ve developed purpose-built technology that handles this complexity. Partnering with Sovos allows us to embed CARF reporting within the broader tax compliance ecosystem, giving digital asset platforms a proven solution that works alongside their existing reporting obligations.”
The combined offering automates critical compliance processes—from client onboarding and tax self-certification to real-time transaction aggregation, fiat valuation with foreign exchange rules, and OECD CARF XML generation with proven zero-rejection accuracy. Financial institutions can integrate CARF reporting into their existing FATCA and CRS workflows, managing all global regulatory obligations through a unified approach rather than maintaining separate systems for each framework.
- Unified reporting across digital assets and traditional investments through Sovos’ platform, eliminating data silos
- Automated cost basis tracking and calculation to ensure accurate gain/loss reporting
- Comprehensive tax ID compliance with automated W-8/W-9 collection and IRS TIN matching
- Seamless integration of CARF reporting with 1099-DA, 1099-B, and other tax forms
- State-level reporting readiness as 1099-DA joins the Combined Federal/State Filing Program
- Consolidated tax statements that simplify the customer experience across all asset classes
“The digital asset industry needs compliance partners who can scale with the rapid pace of regulatory change,” continued Walker. “This partnership positions both companies to serve growing demand as CARF implementation accelerates globally and digital asset platforms seek trusted, proven technology to meet their obligations.”
About Sovos
Sovos is transforming tax compliance from a business requirement to a force for growth. Our flagship product, the Sovos Compliance Cloud platform, enables businesses to identify, determine, and report on every tax obligation across the globe. Sovos processes 16 billion+ transactions per year, helping companies scale their compliance strategy in almost 200 countries.
More than 100,000 customers – including half the Fortune 500 – trust Sovos’ tax and regulatory expertise and unparalleled integration with their business applications. Learn more at sovos.com.
About Sovos Partner Network
Sovos’ Partner Network is built on a shared commitment to trust, collaboration, and long-term growth. We value our partners as essential to our success, working as one team to place client outcomes at the center of everything we do. Sovos invests deeply in its partnerships through training, sales and marketing tools and resources and a dedicated partner development team, empowering partners to pursue new market opportunities, expand geographically, and monetize compliance with confidence.
About Label
Label is a leading provider of automated end-to-end compliance software and expert tax services, specializing in FATCA, CRS, and CARF due-diligence and reporting solutions. With a team combining regulatory expertise from top financial institutions and advanced engineering talent from companies like Amazon and NASA, Label delivers innovative, automated compliance solutions tailored to the financial sector. The company serves banks, fintechs, fund managers, and service providers worldwide, delivering multi-jurisdiction FATCA and CRS regulatory filings with a sustained zero-percent XML rejection rate. Label offers both SaaS platforms and full-service compliance management to simplify global tax reporting obligations. For more information, visit www.labeltech.io.
