New Crypto Regulations: Threat or Opportunity?
Last week the Organisation for Economic Cooperation and Development (OECD) released the SECRETARY-GENERAL TAX REPORT TO G20 FINANCE MINISTERS AND CENTRAL BANK GOVERNORS with a focus on strengthening the legal and regulatory frameworks, creating clear guidance for tax treatments of crypto-assets and virtual currencies and ultimately improving the consistency, transparency and compliance of taxation of crypto-assets. The OECD Inclusive Framework will be based on the architecture of the Common Reporting Standard (CRS). The IRS are expected to follow suit and release their own guidance on tax treatments of crypto-assets and transactions in 2021.
This has many global crypto-exchanges asking themselves how does this major change in the crypto regulation landscape affect them? What exactly are their obligations? Is this a threat to their businesses? We are here to help answer these questions. In short this would require the certification of your clients and tax transactions reporting to the CRS and IRS.
Let’s simplify this, take a simple SWOT analysis. Generally, when we think about regulation changes we think of them as a threat to our business, something that if we don’t get ahead of or adapt to, we could find ourselves liable. Above this if we do not have a clear understanding of the regulation changes and our obligations under them, and fail to put in place the necessary processes, this can inevitably result in us being left behind and become a significant weakness.
At TAINA we challenge you to look at things differently. Turn a threat into an opportunity and a weakness into a strength. If you get ahead of the OECD new regulations swiftly by putting in place cost-effective and time-efficient processes for identifying customers subject to certification and taxation reporting, tracking their activity and soliciting for documentation and provide your customers with a painless, seamless customer experience you can turn this threat into an opportunity to create a competitive advantage that puts you ahead of your competition.
TAINA’s consistent, reliable and scalable solution can help you do this. Make taxation validation your strength that sets you apart from your competition.
For more information on how our fully automated FATCA and CRS Validation platform can add value to your business, get in touch or request a demo to see it in action.