CARF would provide the framework for automatic reporting and information sharing of cryptocurrency assets
Central Bank Governor Gabriel Makhlouf previously compared cryptocurrencies to Ponzi schemes. Photo: Niall Carson/PA Wire
Ireland is one of 47 countries that have committed to introducing 'Crypto Asset Reporting Framework' (CARF) exchanges by 2027.
The move would mean that information about cryptocurrency assets will be shared between different jurisdictions in an effort to clamp down on tax evasion.
The Organization for Economic Cooperation and Development (OECD) published the CARF in 2022.
Cryptocurrency assets have posed problems for regulators as they can be transferred and stored in a decentralized manner without interacting with traditional financial intermediaries.
The CARF would provide the framework for automatic reporting and information sharing on cryptocurrency assets.
In a joint statement, the 47 countries said: โTo follow the rapid development and growth of the cryptoasset market and ensure that recent advances in global tax transparency are not gradually eroded, we welcome the CARF.
โWidespread and timely implementation of CARF will further improve our ability to ensure tax compliance and clamp down on tax evasion, which reduces public revenue and increases the burden on those who pay their taxes.
"We invite other jurisdictions to join us in improving the global system of automatic information exchange that leaves no hiding places for tax evasion."
Countries committed to transpose CARF into their national legislation by 2027.
In addition to Ireland, signatories included most of the major EU states, Brazil, Japan, the United Kingdom and the United States, as well as many smaller territories such as Belize and the Cayman Islands.
Ireland has become a major base of operations for many cryptocurrency companies in recent years, including companies like Coinbase. The US-based company, which is one of the largest cryptocurrency exchanges in the world, chose Ireland to host its European hub.
Other companies in the sector with a presence in Ireland include companies such as MoonPay, a cryptocurrency company backed by celebrities such as Justin Bieber and Gwyneth Paltrow, which opened an office in Ireland in August after receiving authorization from the Central Bank.
The eagerness of cryptocurrency companies to set up shop in Ireland comes despite the regulator's hostility towards digital assets, with Central Bank Governor Gabriel Makhlouf previously comparing cryptocurrencies to โPonzi schemes.โ
Makhlouf has also promised stricter controls on digital assets and cryptocurrencies.occurrences.
