This will also include amendments to the Common Reporting Standard (CRS) for the automatic exchange of financial account information between countries.

In recent years, individuals have rapidly adopted the use of cryptoassets for a range of investment and financial activities. However, unlike traditional financial products, cryptoassets can be transferred and held without the intervention of traditional financial intermediaries and without any central administrator having full visibility on either the transactions carried out, or cryptoasset holdings.

The OECD warns that ‘cryptoassets could be exploited to undermine existing international tax transparency initiatives, such as the CRS’.

The G20 has asked the OECD to develop a framework for the automatic exchange of information on cryptoassets. This new framework provides for the collection and exchange of tax-relevant information between tax administrations, relating to persons engaging in certain transactions in cryptoassets.