The Organisation for Economic Cooperation and Development (OECD) has launched a public consultation document (available below) relating to a new global tax transparency framework to provide for the reporting as well as exchange of details in relation to crypto-assets, along with recommended modifications to the Common Reporting Standard (CRS) for the automated exchange of financial account information in between nations. This new framework offers the collection as well as exchange of tax-relevant information between tax administrations, with respect to persons taking part in specific deals in crypto-assets. It encompasses crypto-assets that can be held and transferred in a decentralised way, without the intervention of traditional financial intermediaries, and also asset classes relying on comparable modern technology that may surface in the future.
Organizations which give solutions to trade crypto-assets against various other cryptoassets, or for fiat money, must use the due diligence process to identify their customers, and thereafter report the aggregate values of the exchanges and transfers for such customers every year.
Besides this Crypto-Asset Reporting Framework (CARF), the OECD has also created proposals as part of the first detailed review of the CRS, with the purpose of enhancing the operations of the CRS, based upon the experience drawn from governments and financial institutions since its inception. The proposal expands the scope of the CRS to cover electronic money offerings, Central Bank Digital Currencies as well as indirect financial investments in crypto-assets through entities and derivatives. The proposal additionally sets out to limit circumstances of overlapping reporting between CARF and CRS. More information is available here.
