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The International Deal against the Crypto Tax Evasion, how it will work

18 November 2023

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The rules for cryptocurrencies seem to turn global in a few years. An International Deal against Crypto Tax Evasion was signed and will include 48 Countries. The deal will be valid in 2027. A total of 48 countries, including the U.K. and Singapore have pledged to implement a tax-transparency standard from 2027. This initiative aims to facilitate the automatic exchange of information between jurisdictions, specifically targeting tax evasion on cryptocurrency exchanges.

"The agreement - reported Commonwealth Chamber of Commerce - adds the Organisation for Economic Co-operation and Development's (OECD) Crypto-Asset Reporting Framework (CARF), to the organization's Common Reporting Standard (CRS), an information standard for the automatic exchange of information regarding financial accounts between tax authorities".

Final agreement on the CARF was reached in March 2023, following two years of negotiation. It will provide for the automatic exchange of information between tax authorities on crypto exchanges for the purpose of combating offshore tax avoidance and evasion. Exactly this statement announces the signatory jurisdictions’ intention to implement the framework in time to commence exchanges by 2027.

Why the International Deal deadline is 2027?

The decision to start using the Deal in 2027, is a deadline that will be used for implementation of global crypto regulation. And there will be also time for other Countries to join the Deal an also applies to the updates in the Common Reporting Standard with the aim of "swiftly transposing the CARF into domestic law and activating exchange agreements in time for exchanges to commence by 2027, subject to national legislative procedures."

Now by now, several nations with a sizeable interest in crypto, such as Turkey, India, China, Russia and all African countries, are not signatories to the statement. According to the release from the U.K.: "We invite other jurisdictions to join us with a view to enhancing the global system of automatic information exchange which leaves no hiding places for tax evasion," the statement said.

SOURCES: Coindesk, Commonwealth Chamber of Commerce

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