CARF (Crypto-Asset Reporting Framework)

2023: System Implementation

On November 10, 2023, almost 50 states agreed to introduce a unified system for reporting crypto assets - CARF (Crypto-Asset Reporting Framework). This initiative is expected to more effectively control the use of cryptocurrencies, as well as help in the fight against tax evasion.

The CARF standard is developed by the Organization for Economic Co-operation and Development (OECD). It provides for the exchange of data between the tax authorities of various countries. This will allow you to track transactions and ensure compliance with tax requirements. It is emphasized that CARF provides for the exchange of data not only about cryptocurrencies, but also about other crypto assets, which mean non-replaceable tokens, stablecoins, etc.

48 States Reported Intent to Implement a Unified Crypto Asset Reporting System

48 states declared their readiness to support CARF. These include,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, and Australia Brazil Bulgaria Canada Czech Republic Denmark Finland France Germany Greece Ireland Italy Japan Korea Luxembourg Mexico Netherlands others. Norway Portugal Romania Singapore Spain Sweden It is planned Switzerland Britain USA that the unified information exchange system on crypto assets will begin to function in 2027.

The implementation of CARF in each individual country will take place taking into account national legislative procedures. The platform is expected not only to stop tax evasion, but also to promote more effective international cooperation in the fight against financial crimes. In addition, the capabilities of specialized structures in terms of tracking operations aimed at financing illegal activities will expand. In general, as noted, the introduction of CARF is an important step in the field of ensuring "global tax transparency."^[1]

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