Taxation logo taxation mission text

Since 1927 the leading authority on tax law, practice and administration

The Crypto-Asset Reporting Framework

15 November 2022 / Claire Shelemay
Issue: 4865 / Categories: Comment & Analysis , cryptoassets , Investments
100543
Framing crypto

Key points

  • Cryptoassets have limited visibility and pose an inherent risk of money laundering and fraudulent activities.
  • The Crypto-Asset Reporting Framework (CARF) was created by the OECD and G20 countries to prevent money laundering and terrorist financing.
  • CARF focuses on cryptographically secured distributed ledger technology – the inclusion of the words ‘and similar technology’ in the description of ‘cryptoassets’ will ensure that new assets which emerge in the future will be within scope.
  • CARF excludes categories of cryptoassets which pose limited tax compliance risks.
  • Intermediaries and other service providers that facilitate cryptoasset exchanges will be required to report under the CRS.
  • The UK wishes to make the UK tax system more competitive regarding cryptoassets.

In April 2021 the G20 mandated the Organisation for Economic Co-operation and Development (OECD) to develop a framework for the automatic exchange of tax-relevant information in relation to cryptoassets. Given the limited of visibility of cryptoassets...

If you or your firm subscribes to Taxation.co.uk, please click the login box below:

If you are not a subscriber but are a registered user or have a free trial, please enter your details in the following boxes:

Alternatively, you can register free of charge to read a limited amount of subscriber content per month.
Once you have registered, you will receive an email directing you back to read this item in full.

Please reach out to customer services at +44 (0) 330 161 1234 or 'customer.services@lexisnexis.co.uk' for further assistance.

back to top icon