Crypto platforms will have to share data

Forty-eight countries including the UK have agreed a joint statement to help combat criminals using crypto-assets to evade tax.

The Crypto-Asset Reporting Framework (CARF) is the Organisation for Economic Co-operation and Development’s latest flagship tax transparency standard. It will require crypto platforms to start sharing taxpayer information with tax authorities which currently they do not do. The CARF is expected to take effect from 2027.

The new framework will be essential to counter the increasing level of tax evasion brought about by the rapid growth of the global crypto market with some estimates suggesting that tax non-compliance on crypto-asset holdings could range from as high as 55% to 95% according to the Treasury.

The CARF will build on the common reporting standard the existing system tax authorities use to share information with each other. This has already been successful in...