OECD publishes new Crypto Asset Reporting Framework

Deloitte Malta Tax Alert

11 November 2022

On 10 October 2022, the Organisation for Economic Co-operation and Development (‘OECD’) published its final rules and commentary on the Crypto Asset Reporting Framework (“CARF”) and Amendments to the Common Reporting Standard (“CRS”), which seeks to increase global tax transparency on crypto assets and is envisaged to become the single global reporting framework for crypto assets.

Crypto Asset Reporting Framework (‘CARF’)

The CARF covers a broad spectrum of crypto assets, including cryptocurrencies and certain non-fungible tokens (‘NFTs’) that can be traded or transferred to others in a digital manner, relying on cryptographically-secured distributed ledger or similar technology. The CARF is intended to solely apply to ‘relevant crypto assets’, thus excluding any crypto assets that are used as a means of payment for goods and services or for a central bank digital currency (‘FIAT Currency’).

CARF reporting obligations are expected to apply in general to reporting crypto asset service providers (‘RCASP’) being qualifying entities or individuals that as a business provide services effectuating exchange transactions for or on behalf of customers where such RCASPs have a sufficient nexus to a participating jurisdiction. The CARF envisages three types of reportable exchanges:

  • crypto asset to FIAT currency;
  • crypto asset to crypto asset; and
  • transfers of ‘reportable retail payment transactions’, where a RCASP processes payments on behalf of a merchant which in turn accepts relevant crypto assets in payment for goods or services, focusing on high value transactions.

The due diligence requirements under the CARF centre around the self-certification-based process in CRS, with respect to obligations applicable to virtual asset service providers, to identify the controlling persons of entities other than active entities where less than 50% of the entity’s gross income is passive income, which includes income derived from relevant crypto assets.


The amendments to the CRS will bring into scope certain e-money products and FIAT Currencies, as these are excluded from the scope of the CARF. To avoid duplication of reporting, the CRS will also contain an optional ‘switch-off’ provision whereby an asset that qualifies both as a ‘relevant crypto asset’ under the CARF and as a ‘Financial Asset’ under the CRS would only be reported under the CARF. Changes are also expected to be made to the definitions of Financial Asset and Investment Entity, to ensure that derivatives that reference crypto assets and are held in Custodial Accounts and Investment Entities investing in crypto assets are covered by the CRS. The CARF will also simplify due diligence procedures to minimise burdens on RCASPs, particularly for those that are also subject to the CRS.

The OECD’s official press release may be accessed here.

Deloitte’s view

The CARF represents a significant development in the global tax transparency framework, by extending the automatic exchange of information to crypto asset reporting. The scope is broadly similar to the amended EU Directive on Administrative Cooperation (known as DAC8), seeking to align tax transparency and associated disclosures among Member States.

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