The Organization for Economic Cooperation and Development (OECD) has announced its plan to establish guidelines for better visibility and transparency on crypto transactions and their users.
In an announcement made on October 10th, OECD, which consists of 38 member countries including the US, Japan, South Korea, and some European Countries, said it is preparing to put forth a framework. The framework is Crypto-Asset Reporting Framework (CARF), in a meeting of G20 finance ministers and central bank governors scheduled on October 12th-13th.
As per OECD, the absence of transparency in crypto transactions comes under the group’s and G20’s Common Reporting Standard (CRS) and increases the potential threat of tax evasion via their use. OECD further said that it aspires to gain more transparency and visibility, and the crypto tax framework would serve the designated purpose.
The framework would call for exchanging essential data between jurisdictions annually to serve the requirements due to the rising number of unauthorized exchanges and wallet providers. It would also highlight the assets that cannot be used for payments or investment purposes.
In his speech, Mathias Cormann, the secretary general of OECD, highlighted the framework’s role in ensuring accountability and transparency. The framework would target all digital assets, exchanges, and transactions made in the sector.
Earlier this year, the G20 developed CARF, which required reporting on the type of cryptocurrency and all transactions related to digital assets, irrespective of whether it’s an intermediary or service provider. Later in August, the OECD amended the framework, thus widening its arena and including all CBDCs.