The G20 group of countries, under the guidance of the Organisation for Economic Co-operation and Development (OECD), may require crypto-asset exchanges to report customers' aggregate investments and transactions to national governments for tax transparency and information sharing purposes, according to STEP.
Key highlights:
OECD warns that as crypto-assets can be transferred and held without the intervention of traditional financial intermediaries, and without any central authority having full knowledge of the transactions or the holdings, crypto-assets can be exploited to undermine international tax transparency initiatives.
In 2020, G20 group of countries asked the OECD to develop a framework for the automatic exchange of information on crypto-assets.
The first draft, called the Crypto-Asset Reporting Framework (CARF), has now been issued for further consultation.
CARF’s plan aims to ensure that individuals and entities that provide business services to exchange crypto-assets apply standard due-diligence procedures to identify their customers and then report the aggregate values of the exchanges and transfers for these customers annually.
The OECD also proposes to extend the Common Reporting Standard scope to cover electronic money products, central bank digital currencies and indirect investments in crypto-assets through investment entities and derivatives.
Link to the STEP article:
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