Crypto Providers Would Have to Swap Transaction Details Under OECD Tax-Dodging Proposal
Details of overseas crypto holdings would be shared with home tax authorities under the planned extension of rules intended to bust financial secrecy.
:format(jpg)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/7Z36YUUCDRBM3OYRUFHU4RVY4A.jpg)
/arc-photo-coindesk/arc2-prod/public/LXF2COBSKBCNHNRE3WTK2BZ7GE.png)
Crypto exchanges would have to share details about the identity and transactions of their users with foreign tax authorities under plans submitted for stakeholder comment Tuesday by the Organization for Economic Cooperation and Development (OECD), which is seeking to avoid foreign digital assets being used to hide wealth.
- There's a "significant risk" that overseas stashes of digital assets could undermine existing requirements to share details of foreign bank accounts, intended to stop tax evasion and illicit finance, the OECD said in a consultation open until the end of April.
- The proposals say crypto providers would have to share their users' names, addresses, Social Security numbers and details of transactions both between crypto and fiat and between different kinds of digital assets. Exchanges would also have to check the tax residences of new users and would be given 12 months to figure that out for existing clients.
- The rules would also apply to both offline "cold" wallets and hot ones, as well as to services like crypto ATMs. But the OECD said it wants to exclude people simply validating blockchain transactions, as well as "closed loop" assets like vouchers used in a particular store. Potential new central bank digital currencies and other kinds of electronic money would be included under existing data-swapping rules, under the plans
- The OECD says it will complete the rules based on peoples' comments and will update the Group of 20 leading rich and developing nations in October.
- The move comes as tax authorities across the world attempt to clarify the liability of crypto holdings and international standard-setter Financial Action Task Force (FATF) seeks to stop anonymous accounts being used to launder money or fund terrorism.
Disclosure
Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.
Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.