OECD Framework collects and automatically exchanges crypto asset transaction data. It includes crypto exchanges, brokers, and ATM providers.
Indian crypto exchanges praise OECD’s new tax reporting framework despite a drop in trade volumes. They hope the OECD’s Crypto-Asset Reporting Framework (CARF) would push India to define its own laws and decrease taxes, reviving the crypto sector.
This is India’s first effort at non-tax regulations. Once OECD norms are in place, India would follow, said WazirX vice president Rajagopal Menon.
The framework collects and automatically exchanges crypto asset transaction data. It includes crypto exchanges, brokers, and ATM providers. Individual and corporation consumers must identify themselves for due diligence. It directs crypto asset businesses to disclose to local authorities.
CARF was founded as the crypto sector grew. In January, the industry’s market capitalization reached over $3 trillion before plummeting. When a record year, 80-90% of trade volumes vanished after the government imposed a 30% tax on virtual assets.
Many individual investors moved to overseas exchanges after 1% TDS was added to every transaction. Ashish Singhal, Co-founder and CEO of CoinSwitch Kuber, claimed the company was ahead of the curve in developing a reporting system. Later this year, India will be the G20 president. It’s a chance to develop policies that make India competitive and boost innovation.
Singhal said we may also learn from the OECD’s concept of “relevant assets.” “While some wealthy countries have crypto legislation and frameworks, the sector requires a worldwide standard. Crypto is a disruptive technology that might affect enterprises worldwide, he said.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.