G20 received crypto reporting framework from OECD
G20 received a crypto reporting framework from OECD that will promote transparency standards for crypto asset.
The G20 received a framework from the Organization for Economic Co-operation and Development (OECD) recently that aims to promote global transparency standards for the automatic exchange of information on blockchain transactions.
At their upcoming summit, the G20 Finance Ministers and Central Bank Governors will discuss the 100-page Crypto-Asset Reporting Framework (CARF) and any suggested changes to the group's Common Reporting Standard (CRS). This meeting will take place in Washington, D.C.
World leaders are trying to acknowledge the fact that the cryptocurrency market is a trillion-dollar sector and that some illegal traders may take use of its permissionless and occasionally pseudonymous features to circumvent regulations, taxes, or engage in other illegal behavior.
The G20 gave the OECD the job of creating a system for automating cryptocurrency tax reporting between countries back in April 2021. The CARF, a report the OECD refers to as a transparency project for crypto, was originally first approved by the organization in August. It presents a strategy for automatic international crypto tax reporting, defines "crypto assets" and "NFTs," and includes rules for trading bitcoin derivatives. China, India, South Korea, Brazil, the United States, the United Kingdom, and the European Union are just a few of the 20 participating member countries that make up the G20.
The CRS, which was created to stop global tax evasion, does not yet apply to cryptocurrencies, the OECD claimed in a statement. Cryptocurrencies are not yet covered by the standard, according to the OECD, which raises the possibility that they will be used for tax evasion, weakening the gains made in tax transparency since the CRS's adoption. The incorporation and definition of Central Bank Digital Currencies (CBDCs) are also included in the OECD's planned revisions to the CRS.
Crypto traders might anticipate the OECD framework being incorporated into national legislation. This will support tax authorities in establishing requirements for the crypto industry's tax compliance.
Many nations probably will be impacted by the framework. Although the United States might be an exception. The U.S. will not be subject to the CARF and CRS since it will develop its own crypto tax legislation in accordance with the Infrastructure Investment and Jobs Act.
CBW - External Analyst