A new era of global crypto tax enforcement has begun as 48 countries, including the U.S., U.K., and EU members, implement the OECD's Crypto-Asset Reporting Framework (CARF). This initiative mandates crypto-asset service providers to report user transaction data to authorities, significantly enhancing tax compliance. In the U.S., cryptocurrency exchanges are now required to issue Form 1099-DA, detailing cost basis and proceeds directly to the IRS, marking a shift from self-disclosure to automatic reporting.
The U.K.'s HMRC has already issued 650,000 nudge letters to crypto investors, a 134% increase from last year, signaling intensified scrutiny. These measures aim to close the tax gap and ensure transparency, but they also pose challenges for crypto users who engage in complex transactions beyond centralized exchanges. As enforcement ramps up, the crypto industry must adapt to these regulations to facilitate compliance and sustain growth.
Global Crypto Tax Enforcement Tightens with New Reporting Framework
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