The OECD has published a consultation 'Crypto-Asset Reporting Framework and Amendments to the Common Reporting Standard'. It is seeking views on bringing these new financial assets into the scope of the Common Reporting Standard (CRS). This affects the way in which banks and exchanges handle crypto accounts and payments.
- There has been an automatic exchange of individual's financial accounts information between national governments since 2017 under the OECD's CRS.
- The rise in the use of crypto-assets that can be held or transferred without traditional financial intermediaries means that there is no central knowledge of these transactions taking place. This, in turn, undermines tax transparency initiatives.
- The Crypto-Asset Reporting Framework (CARF) aims to allow for the same automatic exchange of information on crypto-assets as already exists for traditional financial assets.
- The CRS will also be extended in scope to include electronic monetary products and central bank digital currencies.
- The consultation will remain open until 29 April 2022 and responses have been requested to be in a Word document format. Responses can be submitted via email to:
What is the Common Reporting Standard (CRS)?
This was developed in response to the G20 request and approved by the OECD Council on 15 July 2014, calls on jurisdictions to obtain information from their financial institutions and automatically exchange that information with other jurisdictions on an annual basis. It sets out the financial account information to be exchanged, the financial institutions required to report, the different types of accounts and taxpayers covered, as well as common due diligence procedures to be followed by financial institutions.
Useful guides on this topic
How are Bitcoin, cryptocurrencies or cryptoassets taxed in the UK?
How do you tax Bitcoin? Are cryptocurrency or cryptoasset gains or profits, taxable? Can you obtain tax relief if you make losses on Bitcoin? Gains on transactions in cryptoassets are potentially taxable in the same way as other investments.
Consultation outcome: Cryptoasset promotions
HM Treasury have published the responses to the 'Cryptoasset promotions' consultation, along with further detail on how the government intends to regulate cryptoasset promotions.