2023-11-11 10:16:00
How to regulate crypto-assets? This is the question to which 48 countries and territories have decided to answer by committing to implementing an international standard by 2027 with the objective of greater transparency.
Called “Crypto-Asset Reporting Framework (CDCA)”, this “new international standard on the automatic exchange of information between tax authorities”according to a joint press release published Friday, November 10, was developed by the Organization for Economic Cooperation and Development (OECD).
“We strongly welcome the broad support for rapid action to make the international exchange of information on crypto-asset reporting a reality”, reacted its secretary general, Mathias Cormann, in a press release. The list of countries engaged in the application of this standard includes major economic powers such as the United States, Japan, Germany, France, the United Kingdom, Brazil, Canada and South Africa. There are also Cyprus, Malta, and the Cayman Islands.
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Fight once morest tax evasion
Speaking with one voice, the signatories believe that“widespread, consistent and rapid implementation of the CDCA will further improve our ability to ensure compliance with tax obligations as well as to combat tax evasion, which reduces public revenue and shifts the burden onto those who pay their taxes”.
A complex task, because crypto-assets “can be transferred and held without the intervention of traditional financial intermediaries such as banks, and without a central administrator having full knowledge of the transactions carried out or the location of the assets”notes the OECD.
“As jurisdictions hosting vibrant crypto-asset markets, we therefore intend to work towards the rapid transposition of the CDCA into domestic law”affirm the 48 states and territories in the press release which specifies that this application must allow “to initiate exchanges from 2027, subject to the application of national legislative procedures”.
New rules in Europe from 2024
The regulation of crypto-assets has become a major subject for States, starting with those of the European Union. The latter has also adopted new rules for the trading of cryptocurrencies which must come into force in 2024. Last April, MEPs approved by a large majority the MiCA regulation (Markets in Crypto-assets ), therefore leaving companies in the sector one year to comply with this regulation, under penalty of not being able to operate in one of the member states of the Old Continent or even expand there.
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Beyond laying the foundations for the regulation of these speculative activities and fundraising by Web3 companies which promise instantaneous and cheaper financial services, the MiCA intends to fight once morest money laundering, the financing of terrorism and protect consumers. And for good reason: until now, transfers of virtual assets, such as bitcoins, escaped European legislation on financial services. However, the lack of regulation has “led to massive losses for many early investors and served as a safe haven for hackers, fraudsters and international criminal networks for over a decade”, pointed out Ernest Urtasun (Greens), co-rapporteur of the Economic and Monetary Affairs Committee on transfers of crypto-assets, in April. From now on, crypto-asset service providers (CASPs) will have to register and provide precise data on their identity if they wish to operate in the EU.
(With AFP)
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