A new global framework for cryptoassets

Key points

• The nature of cryptoassets renders regulation and compliance challenging.
• Cryptoassets can be held and transferred without the intervention of traditional financial intermediaries – their use can undermine the existing international tax transparency initiatives.
• The OECD is therefore proposing the creation of the cryptoasset reporting framework.
• The government aims to make the UK a global hub for cryptoassets technology: including introducing stablecoins regulations legislating for a ‘financial market infrastructure’ and reviewing how DeFi loans are treated for tax purposes.

The Organisation for Economic Co-operation and Development (OECD) published a consultation on 22 March 2022 on cryptoassets to propose a new global tax transparency framework focusing specifically on cryptoassets and also a review of the common reporting standard (CRS) and amendments to accommodate cryptoassets. Further on 4 April 2022 the UK government unveiled its plans to become a global hub for cryptoassets.

Cryptoasset reporting framework (CARF)

The definition...