Australia plans to adopt international crypto reporting standard
Australia is going down the path of crypto regulation
The Australian government is discussing implementing the global crypto tax reporting standard developed by the Organisation for Economic Co-operation and Development (OECD).
Australia's Department of the Treasury has released a consultation paper seeking input on adopting the Crypto Asset Reporting Framework (CARF). This standard aims to simplify the collection of tax information on crypto transactions and facilitate data exchange between tax authorities.
The consultation paper outlines two potential approaches: integrating the standard directly into Australian tax law or tailoring it to meet the needs of the Australian Taxation Office (ATO). This move aligns with Australia’s commitment to combating tax evasion involving crypto assets.
What is CARF?
CARF, created by the OECD in 2022, aims to reduce tax evasion by increasing transparency in cryptocurrency transactions.
By 2023, 47 countries, including Australia, pledged to implement this framework into their legal systems, with plans to begin information exchanges by 2027. The framework will require crypto exchanges and service providers to report transaction data, including digital asset purchases, to tax authorities. Reporting requirements are expected to come into effect as early as 2026, giving providers ample time to update their systems.
The crypto market in Australia continues to expand. Earlier in November, crypto exchange Kraken announced the launch of licensed brokerage services in the country.
