The Cayman Islands to Implement CARF
The Cayman Islands is one of 48 jurisdictions that is endorsing a Collective engagement to implement the Crypto-Asset Reporting Framework (CARF). The joint statement on the engagement, which the jurisdictions are issuing today, (10 November 2023) is here.
CARF is a new OECD global standard for the automatic exchange of information on crypto assets. Endorsed by the G20, it aims to further enhance cooperation among tax authorities, for increased transparency in fighting tax evasion and money laundering.
To achieve this, CARF addresses gaps and challenges posed by such crypto assets as decentralised exchanges, peer-to-peer transactions, and privacy coins, which are not covered by the Common Reporting Standard (CRS). Because it builds on CRS principles, CARF leverages the CRS infrastructure and network.
It is anticipated that the first exchanges of information under CARF will be made in 2027. CRS amendments will be made prior to this timeframe, to ensure CARF’s consistency with CRS and to facilitate CARF’s orderly implementation.