The Organisation for Economic Co-operation and Development (OECD) and the G20 are set to present the Crypto Asset Reporting Framework (CARF) at the upcoming Finance Ministers and Central Bank Governors meeting in Washington. The agenda includes a discussion of the latest Financial Report by Mathias Cormann, the Secretary General, who speaks on behalf of the group of advanced economies shaping global fiscal policy.
CARF comprises a set of model rules designed for transferability to national legislation and for interpretations that aid administrations in implementing the framework. The OECD has explained that these rules are meant to harmonize how crypto asset activity is monitored and reported across borders, supporting consistent regulatory practices worldwide.
Developed in collaboration with G20 members, the new transparency initiative responds to the rapid expansion of crypto assets and their diverse uses for investments and financial activities. In the months ahead, the OECD intends to advance work on regulatory measures and practical tools that enable the international exchange of information collected under CARF. The aim is to ensure widespread and effective application across jurisdictions while maintaining robust tax transparency.
Unlike conventional financial products, crypto assets can be moved and held without the involvement of traditional intermediaries such as banks and without a central administrator. This characteristic gives rise to new participants and service providers, many of whom operate in a less regulated environment. The OECD highlights that this reality creates gaps in coverage by the Common Reporting Standard (CRS) and raises concerns about potential misuse for tax evasion. The G20 and OECD therefore emphasize the need to strengthen the tax transparency framework as crypto activity becomes more widespread.
The CRS has demonstrated strong results in curbing international tax evasion. The Secretary General noted that in 2021 more than 100 jurisdictions exchanged information on 111 million financial accounts, covering assets totaling around 11 billion euros. This track record underscores the importance of keeping the transparency architecture current as new reporting streams are introduced.
Officials explain that the introduction of CARF and adjustments to the CRS are designed to preserve and enhance tax transparency. The core objective is to ensure that crypto asset transactions are reported in a standardized, reliable manner and that the information is exchanged with taxpayer jurisdictions on an annual basis, adhering to a consistent set of rules similar in structure to CRS reporting.
Under CARF, the scope will include representations of digital value that rely on cryptographic methods and distributed ledger technology to verify and secure transactions. The framework targets entities and individuals offering crypto asset exchange services, whether directly or on behalf of clients, who will be required to report under the new rules. This approach aims to close gaps in global financial surveillance and strengthen the ability of tax authorities to track cross-border crypto activity, supporting greater accountability and compliance across markets.