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Mahesh

13/10/22 07:39 AM IST

Crypto-Asset Reporting Framework

In News 
  • The Organisation for Economic Co-operation and Development (OECD) has developed a new global tax transparency framework for reporting and exchange of information related to crypto assets.
Key Findings 
  • The CARF aims to ensure the collection and automated exchange of information on crypto assets with jurisdictions of taxpayers’ residences every year in a standardized manner.
  • The framework defines crypto assets as any assets that are held and transferred in a decentralized manner, without the involvement of traditional financial intermediaries. These assets are issued in the form of crypto derivatives, stablecoins, or certain non-fungible tokens.
  • This definition does not include entities that use cryptography only to keep records and does not have ownership rights. It also does not include Central Bank Digital Currency, which has separate reporting requirements.
  • Intermediaries and other service providers enabling the exchange and transfer of crypto-assets like brokers and ATM operators are included within the scope of this framework.
  • The framework was developed amid the rapid progress in the crypto industry.
  • The framework mandates that the crypto asset firms must report to the country in which they operate. They must report about exchanges between relevant crypto assets and fiat currencies, and the exchanges between one or more types of crypto assets as well as other transfers of crypto, including retail payment transactions.
About OECD 
  • The OECD is an intergovernmental economic organisation, founded to stimulate economic progress and world trade.
  • Most OECD members are high-income economies with a very high Human Development Index (HDI) and are regarded as developed countries.
  • Founded: 1961.
  • Headquarters: Paris, France.
  • Total Members: 36.
  • India is not a member, but a key economic partner.
  • Reports and Indices by OECD
    • Government at a Glance 2017 report.
    • International Migration Outlook.
    • OECD Better Life Index.

Source- Indian Express 

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