The Crypto-Asset Reporting Framework

In April 2021 the G20 mandated the Organisation for Economic Co-operation and Development (OECD) to develop a framework for the automatic exchange of tax-relevant information in relation to cryptoassets. Given the limited of visibility of cryptoassets and its inherent risks of money laundering and fraudulent activities a framework is essential to reduce the risks of tax non-compliance and tax evasion.

It is also the next step in achieving global tax transparency and to ensure that the success of the existing common reporting standard (CRS) for the automatic exchange of financial information is not diminished by the use of cryptoassets.

The OECD published a public consultation document on 22 March 2022 to propose a new global tax transparency framework for cryptoassets and a review of the existing CRS and proposed amendments to accommodate cryptoassets. The Crypto-Asset Reporting Framework (CARF) was developed together with G20 countries due to ‘a...