To strengthen efforts to combat those who utilize cryptocurrency assets to avoid paying taxes and engage in money laundering, South Africa is one of 48 nations or territories that have adopted the Common Reporting Standard.

The South African Revenue Service (SARS) said in a joint statement on November 11, 2023, that it approved of the Common Reporting Standard, which will enable automatic information sharing about cryptocurrency holdings between various tax authorities.

The Crypto-Asset Reporting Framework (CARF) standard, according to the apex bank, would help keep up with the market’s explosive growth and development. It seeks to prevent the slow erosion of recent gains in international tax transparency.

“We will be able to ensure tax compliance and crack down on tax evasion, which lowers public revenues and puts more burden on those who pay their taxes, thanks to the widespread, consistent, and timely implementation of the CARF,” stated Sars.

The forum makes it easier for tax authorities from other nations to share information, which improves their understanding of the international money movement and helps them identify the taxable organizations involved. Similar reporting guidelines for several kinds of assets and transactions have already been created by it.

The framework was first approved in March 2023, and the 48 nations that adopted it have now given themselves till 2027 to incorporate it into their own legal systems. Throughout this time, the focus will be on making sure that regional bitcoin exchanges meet the standards.

South Africa has stated that, if national legislative procedures are followed, it intends to swiftly enshrine the CARF in domestic law and begin exchanging agreements within the allotted period.

“The apex bank stated, “Those of us that are signatory jurisdictions to the Common Reporting Standard will also implement, in line with the above timeline and subject to national legislative procedures as applicable, amendments to this standard as agreed by the OECD earlier this year to ensure consistency and a smooth implementation for both business and governments.”

The Financial Sector Conduct Authority (FSCA) has required crypto exchanges to register for licenses by the end of 2023. South Africa was the first nation in Africa to declare cryptocurrency as a legal asset.

The following 48 nations and territories have consented to implement CARF:

Armenia
Australia
Austria
Barbados
Belgium
Belize
Brazil
Bulgaria
Canada
Chile
Croatia
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Iceland
Ireland
Italy
Japan
Korea
Liechtenstein
Lithuania
Luxembourg
Malta
Mexico
Netherlands
Norway
Portugal
Romania
Singapore
Slovakia
Slovenia
South Africa
Spain
Sweden
Switzerland
United Kingdom
United States of America
Crown Dependencies of Guernsey, Jersey, and Isle of Man
United Kingdom’s Overseas Territories of the Cayman Islands and Gibraltar