A COALITION of 48 countries will adopt a crypto-asset reporting framework, known as CARF, by 2027, the Organisation for Economic Cooperation and Development (OECD) said yesterday.

“The CARF, developed in light of the rapid growth of the Crypto-Asset market and pursuant to a mandate from the G20, provides for the reporting of tax information on transactions in Crypto-Assets in a standardised manner, with a view to automatically exchanging such information with the jurisdictions of residence of taxpayers on an annual basis,” the Anadolu Agency quoted OECD as saying in a report.

The framework includes the scope of crypto-assets to be covered, entities and individuals subject to data collection and reporting requirements, the transactions subject to reporting, and the due diligence procedures to identify crypto-asset users, while it aims to determine the tax jurisdictions for reporting and exchange purposes.

OECD secretary-general Mathias Cormann welcomed the pledge by 48 countries to implement the global tax transparency standard for crypto-assets by 2027.

“Today’s announcement of coordinated international action on crypto-assets is a major step forward, marking another important milestone towards the widespread and coordinated approach to combat tax evasion through greater transparency and exchange of information,” he said in a statement.

“We strongly welcome the extensive support being shown for quick action to make the international exchange of information collected under the OECD standard on crypto-asset reporting a reality,” he added.

Some members of the coalition include the United States, Canada, United Kingdom, Australia, Germany, Japan, Singapore and South Africa.

Bitcoin saw its price climb above US$37,000 (RM174,000) on Thursday for the first time in 18 months on optimism over regulatory approvals and growing interest of investors.

The total value of the crypto market was up 2.5% to US$1.42 trillion yesterday, according to data from the digital asset price-tracking website CoinMarketCap. – Bernama, November 11, 2023.