48 OECD Jurisdictions Commit to Implement Crypto Asset Reporting Framework by 2027

On November 10, 2023, the UK HM Treasury released a Joint Statement statement by 48 OECD jurisdictions, including Japan, Korea, and Singapore, announcing their commitment to implement the OECD Crypto Asset Reporting Framework (CARF) with the first exchange of information in 2027.

The joint statement also commits applicable jurisdictions, to implement the amendments to the current Common Reporting Standard (CRS) to the same timeline.

Background

The CARF, the OECD's latest tax transparency standard, was agreed upon in March 2023 after two years of discussion and endorsed at the G20 summit in New Delhi, India, in September 2023.

The aim of the CARF is, to ensure that tax authorities have access to information on transactions in crypto-assets so that they can identify and address tax evasion.

The CARF provides a standardized way for crypto-asset service providers to collect and report information on their non-resident customers' transactions to their local tax authorities.

The information will then be automatically exchanged between participating jurisdictions, using the same mechanisms already in place to exchange information on other types of financial assets.