OECD Director Announces New Crypto Standards By 2021
Despite crypto gaining massive plaudits and recognition since the start of the year, most countries worldwide have been worried about one of the problems it possesses. Asides from regulating crypto, which many nations have found problematic, most of them have been looking for ways to tax crypto traders and firms dealing in crypto-related activities. With this in mind, the Organization for Economic Co-operation and Development director, Pascal Saint-Amans, has announced that its tax center will develop a standard that will be used to report crypto tax before the end of 2021.
Crypto tax framework to be ready before the end of 2021
In his statement, the director said that the organization, which comprises 37 countries worldwide, has agreed to introduce a common ground to report crypto assets by the end of 2021. The reporting standard will be known as the Common Reporting Standard (CRS).
In his statement that was reported by Law360, Saint-Amans noted that the new platform that the organization is planning to establish would mirror the CRS that was previously developed and launched by the OECD to check the activities of investments evading tax.
The director said the move was concluded to introduce more stringent measures to enforce crypto regulations among its member countries. “We have decided that the new project will be delivered before the end of 2021; I can’t say when but I know that it is in 2021 because our member countries are waiting anxiously for the standard,” the director said. The director of the OECD’s latest comment is coming off the back of the recent move by the European Commission to launch a process to review and amend its crypto assets laws.
European Commission to work with OECD to create a crypto tax framework
According to the European Commission, they are set to receive feedback from participating countries by December 21, after the initiative was published on November 23. Also, the European Commission is expected to introduce new laws towards the end of 2021.
Despite the European Commission championing the need to establish a crypto law standard across the region, the director of the OECD still feels that both organizations can come together to create a joint framework to check crypto tax evasion. However, if both entities fail to compromise at the end of the day to join forces, it would see them creating different laws that might contradict each other in the region.
If it eventually comes to this, then European member countries of the OECD will face so many challenges as has been seen in the case of taxing digital services in the region. The director has moved to dispel these assumptions of a contradictory law.
He notes that any framework that the European Commission drums up will be adhered to strictly by the organization. Backing up the director’s comments, a spokesperson for the European Commission has also noted that the commission is working strictly to avoid any inconsistency.
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