Label and Sovos Formed Crypto Tax Partnership
The companies have launched a digital asset reporting solution to meet upcoming international tax transparency requirements.
Updated on Oct. 6, 2026 in Taxes
Live Poll
Should digital asset firms be subject to stricter global tax reporting standards?
Compliance software firm Label and tax compliance company Sovos have entered a strategic partnership to provide reporting solutions for digital assets. The collaboration is designed to help platforms manage complex tax requirements, including those mandated by the OECD.
Why it matters
Digital asset platforms are facing an increasing regulatory burden as global authorities move to standardize tax reporting. This partnership aims to bridge the gap between complex new frameworks and the existing operational demands of international tax compliance.
Sovos currently processes more than 16 billion transactions annually for a base of over 100,000 customers across 200 countries. The new solution supports CARF-compliant XML file generation to automate international reporting submissions.
The players
Label
Label is a specialized compliance software provider that focuses on technology for digital asset regulatory frameworks.
Sovos
Sovos is a global tax compliance company that provides infrastructure for processing millions of transactions for its customer base.
The details
The joint solution integrates Label's specific CARF compliance technology with the existing Sovos tax infrastructure. It assists firms with customer onboarding, transaction aggregation, and foreign exchange calculations to ensure they meet requirements for both CARF and US-based 1099-DA filings.
Timeline
2026 marks the tax year for which CARF reporting activity will be tracked.
2027 is when the full CARF requirements officially take effect.
Market Dynamics
This partnership reflects a broader trend of industry consolidation and technological integration as firms scramble to adapt to the OECD's Crypto-Asset Reporting Framework. By aligning with established tax infrastructure, digital asset platforms seek to mitigate the compliance risks posed by shifting global transparency standards.
Retail investors and platform users will likely see more standardized and automated tax documentation provided by their digital asset exchanges. This shift simplifies the process of meeting cross-border reporting obligations for individual asset holders.
The takeaway
As tax authorities globally tighten oversight on digital assets, platform providers are increasingly turning to automated compliance solutions to manage the overhead. Firms operating in this space should prepare for 2026 data tracking requirements well before the 2027 enforcement deadline.
Further reading
For more information on the evolving regulatory landscape, visit our section on Taxes.
Live Poll
Should digital asset firms be subject to stricter global tax reporting standards?
