Coalition of 48 countries to adopt crypto-asset reporting framework by 2027

By Ovunc Kutlu

ISTANBUL (AA) - A coalition of 48 countries are planning to adopt a crypto-asset reporting framework, known as CARF, by 2027, the Organisation for Economic Co-operation and Development (OECD) said Friday.

"The CARF, developed in light of the rapid growth of the Crypto-Asset market and pursuant to a mandate from the G20, provides for the reporting of tax information on transactions in Crypto-Assets in a standardised manner, with a view to automatically exchanging such information with the jurisdictions of residence of taxpayers on an annual basis," OECD said in a report.

The framework includes the scope of crypto-assets to be covered, entities and individuals subject to data collection and reporting requirements, the transactions subject to reporting, and the due diligence procedures to identify crypto-asset users, while it aims to determine the tax jurisdictions for reporting and exchange purposes.

OECD Secretary-General Mathias Cormann, welcomed the pledge by 48 countries to implement the global tax transparency standard for crypto-assets by 2027.

"Today’s announcement of co‑ordinated international action on crypto-assets is a major step forward, marking another important milestone towards the widespread and co-ordinated approach to combat tax evasion through greater transparency and exchange of information," he said in a statement. "We strongly welcome the extensive support being shown for quick action to make the international exchange of information collected under the OECD standard on crypto-asset reporting a reality."

Some members of the coalition include the US, Canada, UK, Australia, Germany, Japan, Singapore and South Africa.

Bitcoin saw its price climbing above $37,000 on Thursday for the first time in 18 months on optimism about regulatory approvals and growing interest of investors.

The total value of the crypto market was up 2.5% to $1.42 trillion on Friday, according to data from the digital asset price-tracking website CoinMarketCap.