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OECD final guidance on the CARF and CRS amendments
On 10 October 2022, the Organisation for Economic Co-operation and Development (OECD) released the final guidance on the Crypto-Asset Reporting Framework (CARF) and amendments to the Common Reporting Standard (CRS).
This has resulted in two outcomes that were published by the OECD: (i) a new tax transparency framework which provides for the automatic exchange of tax information on transactions in crypto-assets in a standardised manner with the jurisdictions of residence of taxpayers (referred to as the CARF); and (ii) a set of amendments to the CRS.
Financial institutions already within the scope of CRS reporting requirements will have an extended scope of reporting, whereas digital asset funds/managers and e-money service providers will potentially become subject to CRS reporting for the first time. CARF reporting will be applicable to Crypto-Asset Service Providers including exchanges, brokers, dealers, and crypto automated teller machine providers. Such persons are considered to have the best access to information and are also expected to fall within the scope of obliged entities for Financial Action Task Force purposes.
For further information on the CARF, please contact Michael Velten and Mathew Lovatt.