TL;DR
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The Organization for Economic Co-operation and Development (OECD). just came out a new global tax standard for cryptocurrencies.
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CARF is divided into three main areas: 1) Rules for classifying assets; 2) a proposed group for enforcement of these rules on a global scale; and 3) a proposed format for exchanging information between authorities.
Full story
The Organization for Economic Co-operation and Development (OECD). just came out a new global tax standard for cryptocurrencies – and boy, it’s a damn dry book.
But first, who is the OECD and what do they do?
The OECD is an international organization whose purpose is to set benchmarks for a variety of global issues such as climate change, education, employment and taxation.
While the benchmarks it sets are not required to be met, they act as recommendations to regulators in formulating federal and domestic policy.
(Some sort of non-binding agreement – it’s been well thought out, but there’s no need to follow it word for word).
What does all this mean for crypto?
The OECD has just introduced the Crypto-Asset Reporting Framework (CARF) which specifically targets cryptocurrencies.
CARF is divided into three main areas: 1) Rules for classifying assets; 2) a proposed group for enforcement of these rules on a global scale; and 3) a proposed format for exchanging information between authorities.
It also includes a special section on central bank digital currencies (essentially digital currencies controlled by governments), which it suggests must also 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 people have wanted for a long time!