TL;DR
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The Organization for Economic Cooperation and Development (OECD) has just released a new global tax standard for cryptocurrencies.
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CARF is broken down into three main areas: 1) Rules for classifying assets; 2) a proposed group for enforcing these rules on a global scale; and 3) a suggested format for exchanging information among authorities.
Full Story
The Organization for Economic Cooperation and Development (OECD) has just released a new global tax standard for cryptocurrencies – and boy, it’s a heck of a dry read.
But first, who is the OECD and what do they do?
The OECD is an international organization which aims to establish benchmarks for all sorts of global issues like climate change, education, employment, and tax.
While the benchmarks it sets aren’t required to be hit, they act as recommendations for regulators when formulating federal and domestic policies.
(Kind of like a non-binding agreement – useful thought has been put into it, but no need to follow it word-for-word).
What does this all mean for crypto?
The OECD has just introduced the Crypto-Asset Reporting Framework (CARF) which is focused specifically on cryptocurrencies.
CARF is broken down into three main areas: 1) Rules for classifying assets; 2) a proposed group for enforcing these rules on a global scale; and 3) a suggested format for exchanging information among authorities.
It also includes a special section on Central Bank Digital Currencies (essentially, digital currencies controlled by governments), which it suggests should also be required to comply with global tax standards.
This report may be as dry as a dead dingo’s donger to us, but it’s a step in the right direction for crypto tax clarity.
And that’s something that people have wanted for a long time!
