OECD Submit a Crypto Regulation Framework to G20.
In a submission to the G20 on Monday, the Organization for Economic Co-operation and Development (OECD) proposed a framework for enhancing international transparency in cryptocurrencies.
G20 Will Review The Framework This Week
Among the twenty participating countries are China, India, South Korea, Brazil, the United States, the United Kingdom, and the European Union.
A method for automating cryptocurrency tax reporting was tasked to the OECD by the G20 in April 2021.
As part of their next meeting, which will take place in Washington, D.C. this Wednesday and Thursday, G20 Finance Ministers and Central Bank Governors will review the 100-page Crypto-Asset Reporting Framework (CARF) along with suggested amendments to the Common Reporting Standard (CRS).
OECD issued the first CARF report for crypto in August, which it refers to as a “transparency initiative.”
The Act defines “crypto assets” and NFTs, offers an automatic international crypto tax report, and contains provisions for trading cryptocurrency derivatives.
Cryptocurrencies Are Not Covered by The CRS, OECD Claims
CRS, which was designed to prevent international tax evasion, does not currently cover cryptocurrencies, the OECD said in a statement.
According to the OECD, because cryptography is excluded from the current standard, there is a “likelihood of their use for tax evasion while undermining the progress made in tax transparency through the adoption of the CRS.”
Furthermore, as part of the proposed CRS amendments, the OECD proposes adding and defining Central Bank Digital Currencies (CBDCs).
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Combined, the proposed framework and amended standards could mean the end of cryptocurrency’s wild west and the patchwork of international regulations it has inherited.
Leaders are now recognizing crypto’s trillion-dollar market value and that illicit traders may take advantage of the permissionless and sometimes pseudonymous nature of cryptocurrency to evade sanctions, taxes, or engage in other criminal behavior.