Crypto Market

What the States know about your Bitcoin and crypto assets

  • The countries that will exchange information are Chile, Mexico, the United States, Spain, among others.

  • It would begin operating during the year 2027.

What is the international crypto information exchange?

For a few years now, the Organization for Economic Cooperation and Development (OECD) has been promoting the implementation of a reporting regime linked to operations with cryptoassets: the so-called “Crypto-Asset Reporting Framework” (CARF – “Crypto-Asset Reporting Framework”). “).

For this reason, by the end of 2023, some 48 countries (including, for example, Brazil, Chile, Spain, the United States, Estonia, Malta, Mexico, Portugal, the Cayman Islands and Gibraltar), have committed to putting A new international standard for automatic exchange of information between its Tax Authorities has been launched since 2027.

The CARF intends that the acceding countries exchange tax information on transactions with cryptoassets that their citizens perform in the year.

For example, if a person residing in Brazil carried out operations with cryptocurrencies on an exchange in Spain, once a year the Spanish Treasury will share the information about said operations with its Brazilian counterpart.

And the “Travel Rule”?

Promoted by the Financial Action Task Force (FATF), the “Travel Rule” aims for Virtual Asset Service Providers to share information about the sender and receiver with the authorities of the countries where they are located. of transactions with cryptoassets, as long as the transactions reach or exceed US$ 1,000.

Currently, few countries comply with this Travel Rule, including the United Kingdom, Switzerland, the United States, Cayman and Japan.

Do banks and other financial institutions also report?

Yes, in this case there is the Common Reporting Standard (CRS), also created by the OECD 10 years ago and in which many countries participate, with the United States being the most important “absence”.

The CRS ensures that countries obtain information about their financial institutions and exchange itannually and automatically, with the rest of the countries.

In this way, suppose that a person resides in Argentina and has a bank account in Spain: once a year, the Spanish bank will report to the Iberian Treasury and then it will inform the Argentine Treasury, which will know that the person residing in Argentina has X amount of money in the Spanish bank.

Even in recent weeks, the Argentine tax agency already shows on the personal website of each taxpayer, in the “Our Part” section (see image), the information it has about the person, including bank accounts abroad.

The AFIP shows a section about what it knows about you. Fountain: AFIP.

Does each country also have its own internal reporting regimes?

Yes, in addition to the international information regime, each country implements or will implement its own internal regime. For example, in Argentina, local exchanges are obliged to report to the Treasury, on a monthly basis, the information corresponding to each user as long as during the month the user had registered income or expenses in their account for an amount equivalent to about US$360, or that the balance in said account is at least US$620 at the end of the month.

Likewise, as we have commented in a previous article, in Argentina there is also a systemic reporting system that exchanges operating in the country must comply with with the Anti-Money Laundering Unit (UIF).


Disclaimer: The views and opinions expressed in this article belong to its author and do not necessarily reflect those of CriptoNoticias. The author’s opinion is for informational purposes and under no circumstances constitutes an investment recommendation or financial advice.

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