Recently, the CARF topic has been quite popular, and I see many people discussing it. Some voices have started criticizing certain leading exchanges and other platforms, spreading all kinds of bad rumors. But in reality, the key point to understand first is that CARF does not include participation from Mainland China.

This is the most easily overlooked detail. If you are a tax resident of Mainland China and register an exchange account using a domestic passport or ID card, the CARF system will not submit your information to the Chinese tax authorities. These are two separate systems.

Therefore, those who start criticizing certain exchanges because of CARF are somewhat worrying about nothing. What truly matters is whether your tax status and trading behavior comply with local regulations, not blindly following the trend of bad-mouthing exchanges. Many times, FUD (Fear, Uncertainty, Doubt) is created this way—half-knowledge and half-misunderstanding, then starting to stir up trouble.