Seoul - South Korea has joined forces with the United States, Britain, Japan, and dozens of other countries in advocating for an international framework on the automatic exchange of information regarding crypto-asset transactions. This move is aimed at enhancing tax compliance. The finance ministry announced on Friday that the initiative is spearheaded by the Organization for Economic Cooperation and Development (OECD), which approved the Crypto-Asset Reporting Framework (CARF) in August 2022.
According to Yonhap news Agency, the CARF is designed to standardize the reporting of tax information on cyber asset transactions, facilitating the automatic exchange of such information among tax authorities.
The Group of 20 nations has shown support for the framework, and the OECD has targeted 2027 for its implementation. In a joint statement issued on Friday, 48 nations, including South Korea, committed to prompt domestic implementation of the framework and encouraged more countries to participate. The statement highlighted the importance of the CARF in improving tax compliance and combating tax evasion, which undermines public revenues and burdens tax-compliant individuals. The countries involved have pledged to incorporate the framework into their domestic laws and activate exchange agreements by 2027. This effort aligns with the rapid growth of the crypto-asset market and aims to maintain recent advances in global tax transparency.