47 Nations combine forces to require automated tax authority monitoring of crypto trading data
11/15/2023 / By Arsenio Toledo
Nearly 50 nations, including the U.S., have announced their intention to collaborate to enable the automatic exchange of information between cryptocurrency trading firms and tax agencies.
In a press release, the British government said this new coalition of nations and other jurisdictions is partnering up with the Organization for Economic Cooperation and Development (OECD) to create what is known as the Crypto-Asset Reporting Framework (CARF), whose main goal is combating tax evasion and ensuring that those who trade in cryptocurrency comply with national and international taxation regulations.
“To keep pace with the rapid development and growth of the crypto-asset market and to ensure that recent gains in global tax transparency will not be gradually eroded, we welcome the new international standard on automatic exchange of information between tax authorities,” said the British government. “The widespread, consistent and timely implementation of CARF will further improve our ability to ensure tax compliance and clamp down on tax evasion, which reduces public revenues and increases the burden on those who pay their taxes.” (Related: Decentralize.TV interviews LocalMonero co-founder “Alex” about acquiring privacy crypto without using centralized exchanges.)
CARF is just the latest attempt by the international community to facilitate the easier exchange of taxation information to capture lost revenue from cryptocurrency trading. Last month, the Council of the European Union formally adopted the eighth iteration of the Directive on Administrative Cooperation, a cryptocurrency tax reporting rule.
This latest attempt by the European Union (EU) to limit the loss in revenue from crypto aims to grant tax collectors a broadened jurisdiction over monitoring and evaluating cryptocurrency transactions carried out by individuals and entities within the EU.
CARF failed to get important emerging crypto markets to sign up
At least 47 nations have already pledged to join CARF and crack down on individuals and companies using cryptocurrency to avoid taxation.
This massive group of nations includes all 38 member states of the OECD and some territories that have traditionally served as overseas tax havens, including some British Overseas Territories like the Cayman Islands and Gibraltar.
Notably absent from this bloc are crucial emerging crypto markets such as China, Hong Kong, Russia, Turkey and the United Arab Emirates, with their absence being blamed on the fact that the CARF bloc is centered around the Western world in Europe and North America.
Furthermore, not a single African nation has pledged to participate in this new bloc, and only two nations from South America have joined – Brazil and Chile.
Some notable nations that have signed up include Canada, France, Germany, Italy, Japan, Mexico, Romania, Singapore, South Africa, South Korea, Spain, Switzerland and, of course, the United Kingdom.
CARF plans to begin actively exchanging crypto and taxation information by 2027.
“Final agreement on the CARF was reached in March 2023, following two years of negotiation,” said the British government. “It will provide for the automatic exchange of information between tax authorities on crypto exchanges for the purpose of combating offshore tax avoidance and evasion.”
Watch this clip from the “Mark Moss Show” on iHeartRadio warning about how the U.K. has passed a bill allowing the government to seize so-called “illicit” crypto.
This video is from the Thrive Time Show channel on Brighteon.com.
More related stories:
Russia to ban individuals from using cryptocurrency for domestic transactions.
LocalMonero co-founder says CRYPTO is a DIRECT THREAT to U.S. dollar’s monopoly over world economy.
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Tagged Under:
big government, crypto, crypto cult, Crypto-Asset Reporting Framework, cryptocurrency, cryptocurrency trading, economics, economy, government regulations, Tax Evasion, taxation, taxes
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