Indian crypto exchanges give a thumbs-up for OECD reporting framework, say it will promote transparency

moneycontrol.com:

Indian crypto exchanges are cheering the new tax reporting framework released by the Organization for Economic Co-operation and Development (OECD) amid a sharp decline in trading volumes on crypto markets.

They are also hoping the Crypto-Asset Reporting Framework (CARF) of the OECD will prompt the Indian government to frame its own regulations and lower taxes, helping revive the crypto market.

“So far we don't have any concrete rules in India outside taxes; this will be the first attempt. Once the rules have come in place for OECD…, India will be bound to come up with rules,” said Rajagopal Menon, vice president of crypto exchange WazirX.

The framework ensures "the collection and automatic exchange of information on transactions for relevant crypto" assets. It covers exchanges, brokers, and ATM operators that facilitate exchanges between crypto assets.

The framework's due diligence process requires both individual and entity customers to identify themselves. More importantly, it directs crypto asset firms to report to the regulators in the country they do business in.

Exchanges between relevant crypto assets and fiat currencies, along with exchanges between one or more type of crypto and transfers of crypto (including retail payment transactions) assets will need to be reported.

CARF was created against the backdrop of the rapid growth of the crypto industry. In January, the industry touched a market capitalisation of nearly $3 trillion before starting to plummet because of a combination of factors.

In India, the plunge has been even more worrying. After a blockbuster year, 80-90% of trading volumes were wiped out in a few months after the government implemented a 30 percent tax on virtual assets. A move to add a 1% Tax