FameEX Hot Topics | More Than 40 Countries Embrace Global Crypto Reporting Framework

Over 40 countries have collectively pledged to implement the Crypto-Asset Reporting Framework (CARF), a global initiative developed by the Organisation for Economic Co-operation and Development (OECD) under the guidance of the G20. This framework aims to establish consistent and timely reporting of cryptocurrency transactions for tax compliance purposes. A joint statement, endorsed by 48 jurisdictions, including more than 40 countries and territories, underscores the significance of this initiative in bolstering tax transparency and combating tax evasion.

Participating nations encompass a wide range of countries, such as Armenia, Australia, Austria, Barbados, Belgium, Belize, Brazil, Bulgaria, Canada, Chile, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Liechtenstein, Lithuania, Luxembourg, Malta, Mexico, Netherlands, Norway, Portugal, Romania, Singapore, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland, the U.K., and the U.S. Furthermore, the Crown Dependencies of Guernsey, Jersey, and the Isle of Man, alongside the U.K.'s Overseas Territories like the Cayman Islands and Gibraltar, have also shown their commitment to adopting this framework.

The joint statement underscores the vital role of the Crypto-Asset Reporting Framework (CARF) in enhancing tax compliance measures and curbing tax evasion. Through CARF, these nations aspire to establish a standardized approach to reporting tax information related to cryptocurrency transactions. This information will be automatically shared with the taxpayers' jurisdictions of residence on an annual basis. The framework is designed to keep pace with the dynamic and rapidly evolving crypto-asset market while upholding recent progress in global tax transparency.