OECD, global crypto-asset tax information sharing framework to take effect next year

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 specialist media Cointelegraph, the OECD's Crypto-Asset Reporting Framework (CARF·Crypto-Asset Reporting Framework) will be fully applied from January 1 next year.

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

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

CARF is a framework established in response to criticisms that the existing automatic exchange of financial account information (CRS) does not sufficiently cover virtual assets, and it aims to strengthen global virtual asset tax transparency.

Market participants expect that with the implementation of this framework, reporting and taxation standards for virtual asset transactions in major countries will become clearer.