48 Jurisdictions Commit to Crypto Reporting
On November 10, 2023, forty-eight jurisdictions issued a joint statement to collectively engage to implement the Organization for Economic Co-operation and Development (OECD)’s Crypto-Asset Reporting Framework (CARF).
What Is CARF?
CARF provides for the reporting of tax information on transactions in crypto-assets in a standardized manner, with a view to automatically exchanging such information with the jurisdictions of residence of taxpayers on an annual basis. The OECD’s framework for crypto reporting standards will ultimately result in crypto reporting requirements being adapted into local country Common Reporting Standard (CRS) legislation.
48 jurisdictions announced they welcome CARF as a means to ensure recent gains in global tax transparency are not gradually eroded. The 48 stated they “intend to work towards swiftly transposing the CARF into domestic law and activating exchange agreements in time for exchanges to commence by 2027, subject to national legislative procedures as applicable.”
Crypto & FATCA
The U.S. Infrastructure Investment and Jobs Act (which was signed in 2021) imposed non-Foreign Account Tax Compliance Act (FATCA) reporting obligations on crypto exchanges. Currently, crypto assets are still not considered Financial Accounts under FATCA and the U.S. does not participate in CRS. We will have to wait to see how the U.S. implements CARF into domestic law.
The 48 Jurisdictions