The Cayman Islands has signed a statement, along with 47 other countries, UK territories and Crown dependencies, committing to establish cryptocurrency regulations.
This development follows the Organisation for Economic Co-operation and Development introducing its new Crypto-Asset Reporting Framework (CARF) earlier this year.
The tax transparency standard allows for the automatic exchange of information between tax authorities on crypto exchanges in order to combat offshore tax avoidance and evasion.
The statement, published 10 Nov. on the UK government website, announces the signatories’ intentions to implement the framework in time to begin exchanges by 2027.
The commitment will allow them to “keep pace with the rapid development and growth of the crypto-asset market”, it reads.
The signatories, who play host to active crypto markets, also wrote that it will ensure that recent gains in global tax transparency will not be gradually eroded.
“The widespread, consistent and timely implementation of the CARF will further improve our ability to ensure tax compliance and clamp down on tax evasion,” they wrote.
The statement said that tax evasion reduces public revenues and increases the burden on those who pay their taxes.
“We therefore intend to work towards swiftly transposing the CARF into domestic law and activating exchange agreements in time for exchanges to commence by 2027,” they said.
The statement added that those who are signatory jurisdictions to the Common Reporting Standard will also implement amendments as agreed by the OECD earlier this year.
“We invite other jurisdictions to join us with a view to enhancing the global system of automatic information exchange which leaves no hiding places for tax evasion,” they said.
The Compass has contacted the Ministry of Finance for a comment and is awaiting a response.
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