Organization for Economic Co-operation and Development (OECD) G20 will present at the meeting of Finance Ministers and Central Bank Governors this thursday and friday in Washington new Crypto Asset Reporting Framework (CARF) to be discussed as part of the latest Financial Report by Mathias Cormann, Secretary General of the developed countries’ ‘think tank’.
CARF includes these model rules: transferable to national legislation and interpretations to assist administrations with implementationExplained the OECD.
The new transparency initiative, developed in conjunction with the G20 countries, comes in the context of the rapid adoption of the use of crypto assets for a wide range of investments and financial uses, and in the coming months the OECD will advance its work on regulations. and operational tools to facilitate the international exchange of information collected on the basis of CARF and ensure its effective and widespread implementation.
Unlike traditional financial products, ‘crypto’ can be transferred and held without the intervention of ordinary intermediaries such as banks and without any central manager. full visibility of transactions performedresulting in the emergence of new agents and service providers, many of which are currently unregulated.
In this sense, the OECD warns that this means: most crypto assets Y related transactions It is not comprehensively covered by the Common Reporting Standard (CRS). The OECD/G20, which increases the likelihood of its use for tax evasion and undermines progress in tax transparency through the adoption of the CRS.
“The CRS has been very successful in combating international tax evasion.Cormann defended, recalling that in 2021, more than 100 jurisdictions exchanged information on 111 million financial accounts covering a total of 11 billion euros in assets.
“The introduction of the new crypto-asset reporting framework and changes to the Common Reporting Standard will ensure that the tax transparency architecture remains current and effective,” he said.
In this sense, CARF will provide transparency regarding crypto-asset transactions, by automatically exchanging such information with taxpayer resident jurisdictions on an annual basisIn a standard way similar to CRS.
As such, such a framework would target any representation of digital value based on a cryptographically secure distributed ledger or similar technology to verify and secure transactions.
Likewise, within the scope of the new framework, institutions or individuals providing services that perform cryptoactive exchange transactions for or on behalf of customers, they would have to report.