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OECD cryptoasset reporting framework

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The rapid adoption in recent years of the use of cryptoassets for a range of investment and financial activities creates concerns for tax administrations as, unlike traditional financial products, cryptoassets can be transferred and held without the intervention of traditional financial intermediaries and without any central administrator having full visibility on either the transactions carried out, or cryptoasset holdings. As a result, the increasing use of cryptoassets has the potential to undermine existing international tax transparency measures, such as the common reporting standard (CRS).

The G20 has, therefore, asked the OECD to develop a framework for the automatic exchange of information on cryptoassets and the OECD has now published a public consultation document concerning the introduction of a new global tax transparency framework to provide for the reporting and exchange of information with respect to cryptoassets. The public consultation document includes draft rules and commentary for the collection and reporting of cryptoasset information.

The cryptoasset reporting framework

The proposed cryptoasset reporting framework (CARF) provides for the collection and exchange of tax-relevant information between tax administrations in relation to persons engaging in certain transactions in cryptoassets. It covers cryptoassets that can be held and transferred in a decentralised manner, without the intervention of traditional financial intermediaries, as well as asset classes relying on similar technology that may emerge in the future. Individuals and entities that, as a business, provide services to exchange cryptoassets against other cryptoassets, or for currencies, must apply the due diligence procedures to identify their customers, and then report the aggregate values of the exchanges and transfers for such customers on an annual basis.

The CARF will consist of three building blocks:

  • the CARF rules and commentary that can be transposed into domestic law to collect information from resident cryptoasset intermediaries;
  • a framework of bilateral or multilateral competent authority agreements or arrangements for the automatic exchange of information collected under the CARF with jurisdiction(s) of residence of the cryptoasset users, based on relevant tax treaties, tax information exchange agreements, or the Convention on Mutual Administrative Assistance in Tax Matters; and
  • technical solutions to support the exchange of information.

At this stage, the OECD consultation document contains the current draft of the rules and commentary. Once the work on the rules and commentary is completed, the second and third building blocks will be further developed.

The rules and commentary of the CARF have been designed around four key building blocks:

  • the scope of cryptoassets to be covered;
  • the intermediaries subject to data collection and reporting requirements;
  • the transactions subject to reporting as well as the information to be reported in respect of such transactions; and
  • the due diligence procedures to identify cryptoasset users and the relevant tax jurisdictions for reporting purposes.

CRS review

The OECD has also put forward proposals as part of the first comprehensive review of the CRS, with the aim of improving the operation of the CRS. The proposal would extend the scope of the CRS to cover electronic money products and Central Bank digital currencies. In light of the development of the CARF, the proposals also include changes to cover indirect investments in cryptoassets and derivatives.


The OECD is now seeking public comments on these proposals which should be submitted no later than 29 April 2022 (in Word format) to

A public consultation meeting will be held at the end of May 2022. On the basis of the input received via the public consultation, the OECD plans to finalise the rules and commentary to the CARF and the amended CRS. It is the OECD’s intention to report back on the CARF and the amended CRS in time for the October 2022 G20 meeting. 
Issue: 1571
Categories: In brief