OECD International Standards for Automatic Exchange of Information in Tax Matters: Crypto-Asset Reporting Framework and 2023 Update to the Common Reporting Standard

Summary

This document is the OECD's full text of the Crypto-Asset Reporting Framework (CARF) and the 2023 amendments to the Common Reporting Standard (CRS), published by the BVI International Tax Authority as a reference guide. It is not BVI-specific legislation but reproduces the international standards that the ITA expects to inform domestic reporting and due diligence requirements for automatic exchange of tax information.

• CARF: Sets rules requiring Reporting Crypto-Asset Service Providers (exchanges, wallet providers and similar intermediaries) to identify Crypto-Asset Users and Controlling Persons, perform due diligence, and report transactions in Relevant Crypto-Assets for automatic annual exchange with tax residence jurisdictions.
• CARF MCAA: Provides the Multilateral Competent Authority Agreement mechanism (and commentary) that competent authorities use to exchange CARF information between jurisdictions.
• CRS amendments: Expand the CRS to cover certain electronic money products and Central Bank Digital Currencies, bring indirect crypto-asset investments (via derivatives and investment vehicles) into scope, strengthen due diligence and reporting (including reporting the role of each Controlling Person), add an optional Non-Reporting status for genuine non-profit Investment Entities, and create a new Excluded Account category for capital contribution accounts.
• Revised Recommendation: The OECD Council's Recommendation on the International Standards for Automatic Exchange of Information in Tax Matters, revised 8 June 2023, now covers both CARF and the amended CRS and calls on jurisdictions to implement and keep these standards under review.

As published, the document itself does not create direct BVI legal obligations; it is background/reference material. Any binding reporting or due diligence duties for BVI financial institutions or crypto-asset service providers would arise only once these standards are transposed into BVI domestic legislation or regulations, which this guide does not itself enact.

Key obligations

• Once implemented domestically, Reporting Crypto-Asset Service Providers would need to conduct due diligence to identify Crypto-Asset Users and Controlling Persons and determine their relevant tax jurisdictions
• Once implemented domestically, Reporting Crypto-Asset Service Providers would need to collect and report information on reportable Crypto-Asset transactions annually for exchange with residence jurisdictions of taxpayers
• Once implemented, Reporting Financial Institutions would need to apply amended CRS due diligence and reporting requirements to newly in-scope products (electronic money, Central Bank Digital Currencies, indirect crypto-asset investments) and report the role of each Controlling Person

Applies to

Reporting Crypto-Asset Service Providers, Crypto-Asset exchanges, Wallet providers, Financial Institutions, Reporting Financial Institutions, Investment Entities