A new global framework for cryptoassets

The Organisation for Economic Co-operation and Development (OECD) published a consultation on 22 March 2022 on cryptoassets to propose a new global tax transparency framework focusing specifically on cryptoassets and also a review of the common reporting standard (CRS) and amendments to accommodate cryptoassets. Further on 4 April 2022 the UK government unveiled its plans to become a global hub for cryptoassets.

Cryptoasset reporting framework (CARF)

The definition of ‘crypto’ is something which is concealed or secret. The very nature of cryptoassets therefore renders regulation and compliance challenging and increases the inherent risks of money laundering and fraudulent activities.

Risks include market integrity risks consumer risks due to lack of regulation and the risk of cryptoassets being used for illegal activities. In addition to money laundering risks the limited visibility of cryptoassets is a cause of concern to tax authorities regarding non-tax compliance particularly tax...