A significant international initiative is underway to address cryptocurrency tax evasion, with nearly 50 countries, including the US, UK, Brazil, and Japan, committing to new standards set to take effect in 2027.
The Organization for Economic Cooperation and Development (OECD) is leading the effort through the Crypto-Asset Reporting Framework. This framework mandates that cryptocurrency platforms share taxpayer information with relevant tax authorities, aiming to enhance transparency and curb tax evasion within the crypto space.
The UK government anticipates that the implementation of these standards could potentially recover hundreds of millions of pounds in lost revenue. Victoria Atkins, Financial Secretary to the Treasury, emphasizes the commitment to preventing criminals from exploiting cryptocurrencies to evade their tax responsibilities. “Today we are sending out a strong message that we will not allow criminals to use crypto to avoid paying their fair share,” Atkins stated.
While 48 countries have signed onto this agreement, they are actively encouraging other nations to join the initiative. Notably, major crypto markets such as China, India, and Russia have yet to become signatories, posing an ongoing challenge to achieving global consensus on combating cryptocurrency-related tax evasion.