Global Collaboration in Cryptocurrency Tax Evasion Prevention: Around 50 Countries Issue Joint Statement

In an unprecedented move, around 50 countries have come together to issue a joint statement, committing to the Cryptocurrency Asset Reporting Framework (CARF) by 2027.

This collaboration marks a significant step in the global effort to combat tax evasion in the realm of virtual currencies, with a detailed focus on enhancing international cooperation and information exchange.

Read more to understand the impact of this initiative and the countries involved in this groundbreaking approach to financial transparency and compliance.

Setting New International Standards: The Cryptocurrency Asset Reporting Framework (CARF)

Approximately 50 countries announced a joint statement on November 10, 2023, committing to the implementation of the new international standard for the automatic exchange of information between tax authorities, known as the Cryptocurrency Asset Reporting Framework (CARF).

This framework is an international system designed for the exchange of information between nations' tax authorities to prevent tax evasion related to virtual currencies.

The Organisation for Economic Co-operation and Development (OECD) had also made an announcement regarding CARF in October of the previous year.

Enhancing Tax Compliance and Evasion Prevention: The Impact of CARF Implementation

The joint statement includes countries and regions such as Armenia, Australia, Austria, Barbados, Belgium, Belize, Brazil, Bulgaria, Canada, Chile, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Korea, Liechtenstein, Lithuania, Luxembourg, Malta, Mexico, the Netherlands, Norway, Portugal, Romania, Singapore, Slovakia, Slovenia, South Africa, Spain, Sweden, Switzerland, the United Kingdom, the United States, Guernsey, Jersey, the Isle of Man, the Cayman Islands, and Gibraltar. The widespread and timely implementation of the Cryptocurrency Asset Reporting Framework is expected to significantly enhance the capabilities of maintaining tax obligations and clamping down on tax evasion.

Aiming for a Worldwide Information Exchange System by 2027

These countries plan to initiate information exchanges related to virtual currencies by 2027. They intend to strengthen the global information exchange system to completely eliminate regions that serve as hiding places for tax evasion.

Additionally, they are calling for participation from other regions to join in these efforts.