The OECD has published a draft crypto tax reporting framework that would help standardize how global tax authorities share data related to crypto usage.
Key Takeaways
The Organization for Economic Co-operation and Development has released a document revealing a reporting framework designed to overhaul how tax authorities share information related to cryptocurrencies internationally.
The proposed rules would require crypto service providers to collect extensive KYC data and report tax information to the tax authorities of each of their customer’s resident jurisdictions.
The OECD has invited interested parties to comment on the newly-proposed tax rules by the end of April.
Today, the Organization for Economic Co-operation and Development released a public consultation document revealing a new crypto tax reporting framework designed to overhaul how international tax authorities share tax information related to cryptocurrencies.
OECD Publishes Draft Crypto-Asset Reporting FrameworkNew proposals seek to incorporate cryptocurrencies into the international tax reporting regime.
Today, the Organization for Economic Co-operation and Development published a consultation document seeking input from global policymakers concerning its new crypto tax reporting framework. The new due diligence procedures proposed under the draft guidelines would require individuals and entities that as a business provide crypto custody and exchange services to “identify their customers” and provide the “aggregate values of the exchanges and transfers for such customers on an annual basis.”
The OECD is an intergovernmental economic organization with 38 member countries established to foster international cooperation on common problems. The organization developed the Crypto-Asset Reporting Framework at the request of the G20, some of whose members worried that cryptocurrencies could be “exploited to undermine existing international tax transparency initiatives,” including the Common Reporting Standard.
The framework seeks to create an international standard for collecting and automatically exchanging information regarding crypto-related transactions between crypto service providers and international tax authorities. Under the new rules, crypto service providers would have to collect extensive customer-identifying data and report tax information to the tax authorities of each of their customer’s resident jurisdictions.
Besides reporting crypto-to-crypto and crypto-to-fiat transactions, the OECD has also suggested in its draft framework that crypto services should report on “transfers of Crypto-Assets, which would allow tax authorities to identify and track unhosted wallets of crypto users. “In order to increase visibility on these [transfers to unhosted wallets], the CARF also allows tax authorities to opt-in to receive reporting on the list of external wallet addresses,” the document reads.
Besides centralized cryptocurrency exchanges, the OECD’s definition for “crypto-asset service providers” includes other intermediaries providing exchange services, including brokers, dealers, and operators of crypto ATMs.
Finally, the OECD has proposed amendments to the Common Reporting Standard—a standard for the automatic exchange of information between international tax authorities to fight tax evasion—to incorporate central bank digital currencies and other digital representations of fiat currency under the standard.
The OECD has invited all interested parties to comment on the newly proposed crypto tax reporting rules by the end of April before finalizing the rules based on the feedback and updating the G20 in October.
Disclosure: At the time of writing, the author of this feature owned ETH and several other cryptocurrencies.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
NFT Express: Your on-ramp to the world of NFTs
At Tatum, we’ve already made it super easy to create your own NFTs on multiple blockchains without having to learn Solidity or create your own smart contracts. Anyone can deploy…
EU Regulators Warn Crypto Investors Could Lose Everything
News
Mar. 17, 2022
The European Union’s securities, banking, and insurance regulators have warned consumers against the risks of investing in crypto. EU Regulators Say Crypto Investors Risk Going Broke EU regulators have issued…
EU Wants Anti-Money Laundering Regulator to Monitor Crypto
News
Feb. 22, 2022
The EU is hoping to bolster its crypto oversight efforts by giving its new anti-money laundering watchdog more power to oversee the industry. EU Aims to Increase Crypto Oversight The…
Central Banks Recommended to Ban Stablecoins
Today, the Financial Stability Board (FSB) released a document addressing the regulatory, supervisory, and oversight challenges raised by global stablecoins. The document, although only consultative in nature, reveals disturbing plans for…
Which Regulators Are Shaping U.S. Crypto Policy?
Agencies like the Securities and Exchange Commission and Commodities Futures Trading Commission play an important role in financial regulation in the United States. In this feature, we explain the country’s…