DeFi, Covered Assets Change in OECD Crypto-Asset Framework (1)

The OECD’s final tax reporting framework for cryptocurrency narrowed its definition of covered assets and treatment of decentralized finance, adopting changes the crypto industry called for earlier this year.

The Organization for Economic Cooperation and Development released Monday a framework —called the Crypto-Asset Reporting Framework or CARF—aimed at unifying global cryptocurrency tax reporting. Existing financial regulatory schemes are insufficient to stop illicit activity and tax evasion related to cryptocurrency assets, OECD member countries say.

Under the draft framework, a covered digital asset, an item such as a non-fungible token someone makes and then gives as a gift could have been …