The OECD released a draft framework March 22 that would standardize how global tax authorities regulate and share tax information related to cryptocurrency assets.

The draft—called the Crypto-Asset Reporting Framework, or “CARF”—includes model technical rules and a commentary written for wide adoption and data-sharing among tax administrations.

Countries that adopt the Organization for Economic Cooperation and Development's standards would require individuals and entities that “provide services to exchange crypto-assets against other crypto-assets, or for fiat currencies” to identify their customers and report the aggregate values of the exchanges and transfers on an annual basis.

Buchanan Ingersoll & Rooney PC international tax attorney Sahel Assar called the draft proposal a “tsunami” of regulation coming for cryptocurrency and related industries. Regulation, she says in our latest podcast, helps to legitimize the crypto industry.

The OECD is gathering public comments on the draft through the end of April. It aims to update the proposal and present it at the October meeting of the Group of 20.

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