48 nations, including the UK, Singapore, and Luxembourg, have come to an agreement on a tax transparency standard that aims to stop tax evasion on cryptocurrency exchanges. This is a first for the world. There will be automatic information sharing between jurisdictions starting in 2027.
It incorporates the Crypto-Asset Reporting Framework of the Organization for Economic Co-operation and Development (OECD) into its Common Reporting Standard, enabling automatic financial account information sharing amongst tax agencies.
The UK emphasizes this program as a crucial step in the fight against offshore cryptocurrency tax avoidance. To improve tax compliance, it will force crypto platforms to give tax officials access to taxpayer data.
The goal of the 2027 deadline is to have local laws quickly adopt this new norm. Yet, all of the African countries as well as Turkey, India, China, and Russia are yet to join, despite heavy use of crypto. The joint statement calls on more countries to join in order to ensure that there are "no hiding places for tax evasion."