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Global Momentum: 48 Nations Commit to OECD’s Crypto-Asset Reporting Framework by 2027

On November 10, 2023, OECD Secretary-General Mathias Cormann expressed his approval of the announcement that 48 countries and jurisdictions plan to adopt the OECD’s global tax transparency framework for reporting and exchanging information regarding crypto-assets by 2027.

“Today’s announcement of co‑ordinated international action on crypto-assets is a major step forward, marking another important milestone towards the widespread and co-ordinated approach to combat tax evasion through greater transparency and exchange of information,” Cormann stated.

“We strongly welcome the extensive support being shown for quick action to make the international exchange of information collected under the OECD standard on crypto-asset reporting a reality. The international community can count on the OECD and the Global Forum on Transparency and Exchange of Information for Tax Purposes to ensure that the tax transparency architecture remains both up-to-date and effective going forward,” Cormann added.

The Crypto-Asset Reporting Framework (CARF) stands as a pivotal element of the International Standards for Automatic Exchange of Information in Tax Matters, developed by the OECD under a G20 mandate. This framework facilitates the automatic exchange of tax-relevant information concerning crypto-assets, responding to the escalating use of crypto-assets for various investment and financial purposes.

Crypto-assets differ from traditional financial products in that they can be transferred and held without the involvement of conventional financial intermediaries like banks and without a central administrator having complete visibility into transactions or crypto-asset holdings.

Following the delivery of CARF to G20 Finance Ministers in October 2022, the G20 tasked the Global Forum on Transparency and Exchange of Information for Tax Purposes, an international body uniting 168 countries and jurisdictions, with enhancing its commitment and monitoring processes to ensure widespread implementation of CARF by relevant jurisdictions.

Since finalizing the legal and operational instruments of CARF in June 2023, the Global Forum has established a dedicated “CARF Group” to propel the work forward. The matter of crypto-asset reporting will be further deliberated at the Global Forum’s 16th Plenary Meeting scheduled to take place in Lisbon, Portugal, from November 29 to December 1, 2023.

News Desk

Unlock News Desk, is a group of Blockchain and Crypto enthusiastic young people, working to keep Unlock readers up to date with the industry news. Connect with the team via email: info(@)unlock-bc.com

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