Cross Border reporting framework of OECD for crypto assets

Key highlights of the framework-

• The core of the framework is automatic exchange of information between countries and mandatory customer identification as part of the due diligence process. 
• This is in response to an earlier proposal of G20 that the OECD develop a framework for the automatic exchange of information between countries on crypto-assets. 
• The CARF was presented to G20 Finance Ministers and Central Bank Governors for discussion at their meeting on October 12-13 in Washington D.C.
• The CARF defines the relevant crypto assets in scope, transactions, and the intermediaries and other service providers that will be subject to reporting.
• The CARF targets any digital representation of value that relies on a cryptographically secure distributed ledger or a similar technology to validate and secure transactions. 
• Carve-outs are foreseen for assets that cannot be used for payment or investment purposes and for assets already fully covered by the common reporting standard. 
• Entities or individuals that provide services effectuating exchange transactions in crypto-assets for, or on behalf of customers would be obliged to report under the CARF. 
• India has backed a global framework to ensure more effective monitoring of transactions in virtual assets.