Forty-eight countries and jurisdictions have pledged to adopt the Organisation for Economic Co-operation and Development‘s (OECD) framework for tax transparency and information exchange regarding crypto assets by 2027.
This commitment marks a significant stride in international efforts to address tax evasion in the rapidly evolving crypto market.
OECD Secretary-General Mathias Cormann hailed the announcement as a crucial step towards a coordinated global response to the challenges posed by crypto-assets.
“This coordinated international action on crypto-assets is a milestone towards greater transparency and exchange of information to combat tax evasion,” Cormann said.
He also expressed gratitude for the widespread support for the quick implementation of the OECD standard on crypto-asset reporting.
The Crypto-Asset Reporting Framework (CARF), developed under a G20 mandate, is a critical part of the International Standards for Automatic Exchange of Information in Tax Matters.
It aims to facilitate the automatic exchange of information relevant for tax purposes concerning crypto-assets.
This development comes as crypto-assets are increasingly used for various investment and financial purposes, often bypassing traditional financial intermediaries like banks and lacking a central administrator for transaction and asset visibility.
The G20 has tasked the Global Forum on Transparency and Exchange of Information for Tax Purposes, an international body comprising 168 countries, with ensuring the broad implementation of the CARF.
The Forum will be instrumental in monitoring and enforcing compliance with these new standards.
Since the finalization of the CARF’s legal and operational instruments in June 2023, the Global Forum has formed a dedicated “CARF Group” to advance this initiative.
The group’s progress and the broader topic of crypto-asset reporting will be key discussion points at the Global Forum’s 16th Plenary Meeting, scheduled in Lisbon, Portugal, from November 29 to December 1, 2023.
This initiative reflects a growing recognition of the need for greater regulation and transparency in the cryptocurrency market, which has seen a surge in popularity and use in recent years.