The Organisation for Economic Cooperation and Development (OECD) has released a global tax reporting framework for cryptocurrencies. The framework will help keep track of cross-border transactions of crypto assets.
The exchange of information between countries is proposed to be automatic under the new framework. Also, for due diligence, the exchanges will be asked to identify the customers.
“The Crypto-Asset Reporting Framework (CARF) responds to a G20 request that the OECD develop a framework for the automatic exchange of information between countries on crypto-assets,” OECD’s statement read.
The statement further added that crypto assets can be used for tax evasion because of a lack of any regulations.
“The crypto market has also given rise to new intermediaries and service providers, such as crypto-asset exchanges and wallet providers, many of which currently remain unregulated,” it said.
“These developments mean that crypto-assets and related transactions are not comprehensively covered by the OECD/G20 Common Reporting Standard (CRS), increasing the likelihood of their use for tax evasion while undermining the progress made in tax transparency through the adoption of the CRS,” OECD added.
The information, according to CARF, will be shared on an annual basis and accounting will be done on the lines of CRS.
The framework will be presented at the finance ministers’ meet in Washington DC this week.
“The CARF will be presented to G20 Finance Ministers and Central Bank Governors for discussion at their next meeting on 12-13 October in Washington DC,” it said.
India has repeatedly backed a global framework for regulating cryptocurrencies.
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