Approximately 50 nations have agreed to implement a plan requiring cryptocurrency platforms to disclose client information to tax authorities

The OECD's newly established Crypto-Asset Reporting Framework (CARF) mandates that crypto platforms share taxpayer data with tax authorities, a practice they currently do not follow. The regulations are anticipated to take effect for data exchanges among 48 countries, including major economies like the UK, Australia, the US, France, Germany, Canada, Japan, Korea, and the Cayman Islands, commencing from 2027.

A joint statement signed by these 48 countries expresses their commitment to promptly adopting the CARF into national legislation and activating exchange agreements by 2027, pending domestic legislative processes.

The objective is to grant tax authorities access to cross-border information, aiding in the enforcement of tax compliance. This framework is crucial to counter the rising trend of tax evasion resulting from the rapid expansion of the global crypto market. Estimates suggest that non-compliance in tax payments on cryptoasset holdings could range from 55% to 95%.

The UK, foreseeing the potential recovery of substantial tax revenue through CARF implementation, has forged a historic agreement with 48 nations to combat criminal exploitation of cryptoassets for tax evasion.

Victoria Atkins, the financial secretary to the Treasury, remarked, 'The UK is once again demonstrating leadership in addressing global tax evasion, safeguarding essential revenue for public services. Today's message is clear: criminals will not be permitted to exploit crypto to evade their fair tax obligations.'

CARF will complement the Common Reporting Standard, an existing system for tax authorities to exchange information on individuals with offshore income. Since its inception in 2014, this system has proven successful in combating offshore tax evasion, leading to the recovery of almost £100bn in additional tax revenue from conventional financial assets."