OECD introduces global tax reporting framework for crypto assets amid 'rapid adoption'

In response to a request from G20 countries, the Organization for Economic Co-operation and Development ("OECD") has released its new global tax reporting framework for crypto assets, it said Monday.In the wake of fast-growing adoption of crypto use for investment- and financial-related activities, the Crypto-Asset Reporting Framework ("CARF"), which was approved in August, "will ensure that the tax transparency architecture remains up-to-date and effective,” said OECD Secretary-General Mathias Cormann.The new framework comes as existing regulations aren't enough to stave off crypto-related illicit activities such as tax evasion. U.S. senators, meanwhile, introduced a bill towards the end of July that would end taxes on small crypto transactions.The CARF will specifically "ensure transparency with respect to crypto-asset transactions, through automatically exchanging such information with the jurisdictions of residence of taxpayers on an annual basis," the organization said.Entities that provide crypto transaction services would be required to report under the CARF, including exchanges and brokers.South Korea was said to explore taxing recipients of crypto airdrops.