CRS

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Post is by: tornavec and the url/text [ ](https://goo.gl/GP6ppk)is: /r/CryptoMarkets/comments/1p9jwvx/the_uk_kills_crypto_privacy_at_the_state_level/ From 2026 onwards, all British cryptocurrency platforms will be required to report every transaction to HMRC. This is a decision made voluntarily by government agencies. The OECD only required them to exchange data internationally to help identify tax evaders. However, London has decided to apply the global Common Reporting Standard (CRS) to domestic operations in order to eliminate any possibility of anonymous and unverified cryptocurrency exchanges. For the DeFi sector, however, the 'no profit, no loss' principle is being introduced, which allows tax payments to be deferred until the actual sale of tokens. I would now like to hear the opinions of UK crypto enthusiasts on this issue. How will this work? As I understand it, offshore companies under the British Crown will also be subject to the same 'crypto transparency' laws. *I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/CryptoMarkets) if you have any questions or concerns.*

OkSeries5363

I get the frustration with a corrupt government, but unfortunately the tax obligation doesnt disappear just because the transaction is on chain. CARF was specifically written to cover, entities or individuals who exercise control or sufficient influence over a decentralized exchange or DeFi protocol. While reporting for truly permissionless activity remains a challenge, the authorities are targeting the on ramps/off ramps and the protocol creators to fulfill reporting obligations. The tax liability is still yours, and the tools available to tax authorities to trace on chain activity, like wallet analytics are constantly improving. It's not really a single country thing, most are taking large steps. International financial bodies have created standards like the crypto asset reporting framework (CARF). This framework is designed to make it mandatory for crypto service providers worldwide to collect and automatically exchange data on crypto transactions with your home country's tax authorities. The days of using crypto for completely untraceable tax evasion are rapidly coming to an end. Basically its an expansion of the common reporting standard (CRS), which already requires banks to share traditional financial data internationally. CARF simply brings crypto under that same global tax transparency umbrella. Even if you home country is behind, the big risk I see is that the transactions you are making on chain can't be removed from the blockchain. So it serves as clear immuable proof of thoes transactions, if they did start looking.

your_unpaid_bills

This is correct, in principle, but when you swap or sell coins for profit and report it, they can - and if the sum is large enough, they definitely will - ask you to prove that 1) the source of your BTC was legal, and 2) your cost basis (that is, the avg. price at which you bought, to calculate your actual profit and, thus, how much you owe) was accurate. If you cannot prove that the source was legal or, even worse, if they can connect it to illicit activities (e.g. you bought dirty coins), then you are screwed. If you can prove somehow that the source was legal, but don't have accurate records of when you bought and all transactions, then they will assume a cost basis, most likely the lowest possible one so as to make you pay the largest amount in taxes, and will likely also fine you. If you intend to take profits using a bank account in your name, registered in a CRS country, especially if we are talking large sums at once or often, then you need to have some documentation ready in case the tax man comes after you asking where that money is coming from. This applies even if you do everything p2p to try and escape their radar, your account will be flagged if you receive money from strangers too often or too large sums.

zurditosalparedon

this is going to be like the CRS for banks, first they test in on europe, then worldwide... https://www.oecd.org/ctp/exchange-of-tax-information/oecd-seeks-input-on-new-tax-transparency-framework-for-crypto-assets-and-amendments-to-the-common-reporting-standard.htm

Dry-Woodpecker1861

You will have to move then to a country that didn't sign the OECD Common Reporting Standards (CRS) https://www.forbes.com/sites/shehanchandrasekera/2022/03/28/the-oecd-wants-more-visibility-into-your-cryptocurrency-activity/?sh=366bd82a53fe

web3d3v

FATCA vs CRS

Heuvelgek

Ah so you know who the wallets belong to then? Even though it might be owned by a corporate entity or trust? This most definitely was sold to a wallet held by a trust in a low taxed jurisdiction by a person/entity in a high taxed jurisdiction, shifting profits essentially. This would indeed be illegal, depending on the tax residence of the ultimate owner. Problem is linking these wallets to the actual person. That's not easy unless they went through a KYC exchange that also reports under FATCA/CRS.

coinfeeds-bot

tldr; The OECD has proposed a framework for the reporting of cryptocurrency assets in an effort to streamline global tax compliance. The Crypto-Assets Reporting Framework (CARF) will bolster the Organization for Economic Co-operation and Development’s existing Common Reporting Standards (CRS). CARF will also target centralized cryptocurrency exchanges, decentralized cryptocurrency exchanges and broker dealers. *This summary is auto generated by a bot and not meant to replace reading the original article. As always, DYOR.*

mimblezimble

> **In Practice, Bitcoin Has Been an Unreliable Inflation Hedge** He's got no patience! Just like all the other idiots on Wall Street, he gets **confused by short-term price action**. Without a solid understanding of the fundamentals of what you are buying, you are just **one more sucker**! These articles are written by inveterate suckers for other suckers. The guy is the king of suckers, leading a pack of other suckers, ready to get asset-mined and stripped clean by the smarter crowd on Wall Street, whose profits come almost exclusively from tearing the flesh of the bones of amateur suckers, who get manipulated by articles such as this one and which encourage them to do stupid things in which they are only going to get ambushed. > **Bitcoin Is Vulnerable to Regulation** Only for suckers. Instead of simping for the ruling mafia, and with a little bit of jurisdiction shopping, you can trivially avoid these regulations. For example, you can expect Russia to soon implement very favorable Bitcoin regulations. So, you will be able to avoid the western bullshit simply by using Russian platforms instead. Another advantage is that Russia has obviously stopped reporting under FATCA and CRS. That is another reason why their platforms are going to get very popular. **Fuck all the new laws!**

mimblezimble

> Just as long as we're clear about what you stand for I want the return of a multi-polar world, consistent primarily of the USA, Russia, and China. All these ruling mafias cannot be trusted, except for viciously obstructing each other. They cannot be allowed to be friends, and they must never cooperate with each other, because that will always degenerate into more obnoxious behavior towards the common people. For example, I want the immediate abrogation of FATCA and CRS. Russia and China must immediately cancel those treaties, and in their wake, we should be able to convince at least 100 additional countries to follow suit. The FATF must also be disbanded immediately, effective right now. Furthermore, it would be a good idea to go through all existing treaties and abolish some more bullshit left and right. For example, most United Nations organizations must also be dissolved. They can keep the talk show going, though. The WHO must also be disbanded. The list goes on and on. We now expect Russia and China to take the lead in getting rid of the crap. There shall be no more "collaboration" that creates new bureaucracies to incessantly harass the world population with. Good riddance.

Professional_Desk933

Guys, take a look on what is the Common Report Standard is and you’ll realize that our privacy is becoming more and more non existent. Soon they will be able to type your name in a database and get every single information of you. How much money you have, in what banks, what investments you have, what you spend your money with, how much you earn, what you bought, etc. In Argentina there were some rich guys being kidnapped after an apparently data leak from the CRS a few years ago. Private don’t mean anonymous. Privacy means that you have a choice to be either public or private and that’s up to you to decide, not someone else. The moment the government knows everything about you with the excuse that’s for your own good, we are entering a 1984 movie. **Privacy is a right**