More and more businesses are utilising crypto, which has led to more and more initiatives to control it, including CARF by the OCED.
The G20 recently requested the development of an ‘automatic exchange of information between countries on crypto-assets.
The Crypto-Asset Reporting Framework, or CARF, was presented to G20 ministers and Central Bank Governors in Washington, DC.
But why was this framework implemented?
One of the reasons crypto is such an in-demand form of currency is the lack of control by regulators.
With it being a purely digital eternity, there is a lack of regulation seen with traditional forms of currency.
What is CARF?
In short, the framework was implemented for crypto assets to be regulated by G20-associated countries.
CARF was orchestrated by the OECD.
(The Organisation for Economic Cooperation and Development)
It was presented to the countries that form G20 at their meeting, which took place from the 12th to the 13th of October 2022.
A quote from the OECD states;
As it stands, there is no stability and control over crypto assets leading to an increase in potential tax evasion.
What is the OECD?
The OECD (The Organisation for Economic Co-operation and Development) was founded in 1961 in Paris, France and its primary goal is as states;
The OECD Crypto Assets Framework is expected to significantly impact the future of cryptocurrencies, as it sets forth clear regulations and guidelines for countries worldwide.
The framework establishes principles that each country must follow when dealing with digital assets, such as consumer protection, anti-money laundering measures, taxation policies, and more.
This standardised approach will help ensure that crypto transactions are conducted orderly, ultimately increasing trust and adoption from governments and users alike.