The Organization for Economic Co-operation and Development (OECD) has submitted an initiative to the G20 to increase transparency in everything related to digital assets.
G20 finance ministers and central bank governors will review the 100-page Crypto Asset Reporting Framework (CARF) along with proposed amendments to the Common Reporting Standard (CRS) at a meeting this Wednesday and Thursday in Washington.
The reporting innovation has been dubbed the “Cryptocurrency Transparency Initiative.” Among other things, the reporting should include a definition of what crypto assets and non-fungible tokens (NFTs) are. It is also proposed to automate international tax reporting on digital currencies and include provisions for derivatives trading on this asset class.
Now, the OECD explains, cryptocurrencies are not subject to the Common Reporting Standard, which was developed to prevent tax evasion. Therefore, there is a high probability that digital assets will be used for this purpose. Therefore, the inclusion of cryptocurrencies in the reporting standard is long overdue. Among other things, it is proposed to include central bank digital currencies (CBDC) in the CRS.
Recall that in July, India called on the G20 to include digital currencies in the global exchange of tax information. According to Nirmala Sitharaman, India’s finance minister, CRS has proved to be an effective system that can quickly track the movement of finances.
Source: Bits
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