OECD to implement global virtual asset tax information-sharing framework next year

JH Kim

Summary

The Organisation for Economic Co-operation and Development (OECD) said the global virtual asset tax information-sharing framework will be fully implemented from January 1 next year.
It said that crypto-asset exchanges and platforms in 48 countries, including the United Kingdom and European Union (EU) member states, are required to collect and report users' tax residence, account balances, and transaction histories.
The market said that the implementation of CARF is expected to clarify reporting and taxation standards for virtual asset transactions in major countries.

The Organisation for Economic Co-operation and Development (OECD)'s global virtual asset (cryptocurrency) tax information-sharing framework will be officially implemented next year as scheduled.

On the 30th (local time), according to crypto-asset-focused media Cointelegraph, the OECD's Crypto-Asset Reporting Framework (CARF) will come into full effect from January 1 next year.

Accordingly, 48 countries, including the United Kingdom and European Union (EU) member states, will require crypto-asset exchanges and related platforms to collect and report users' tax residence, account balances, and transaction histories.

Tax authorities in each country will share the collected information through the automatic exchange of tax information between countries. Through this, they plan to reduce tax blind spots for cross-border virtual asset transactions.

CARF is a framework established in response to criticism that the existing Common Reporting Standard (CRS) for the automatic exchange of financial account information does not adequately cover virtual assets, and it aims to strengthen global transparency in virtual asset taxation.

The market expects that with the implementation of this framework, reporting and taxation standards for virtual asset transactions in major countries will become clearer.