CRS 2.0 Incorporates Crypto Assets into the Global Tax "Sky Eye," Overseas Taxation Enforcement Becomes Stricter

Deep Tide TechFlow News, May 20th, according to Caixin, the global tax "Eye in the Sky" CRS 2.0 is accelerating its implementation worldwide, with encrypted assets, CBDCs, and some electronic currency products already included in the scope of financial asset reporting. Hong Kong, China, plans to implement CRS 2.0 by 2028 and simultaneously promote the Crypto Asset Reporting Framework (CARF). In the future, cryptocurrency exchanges, brokers, and crypto ATM operators will need to report on the exchange of cryptocurrencies and fiat currencies, cross-currency crypto asset swaps, and the transfer of crypto assets domestically and internationally. Reports must accurately specify the full name of assets, such as Bitcoin (BTC), Ethereum (ETH), Tether (USDT), etc., and calculate total market value, total holdings, and number of transactions based on trading dimensions; for retail payment transactions, individual transactions exceeding $50k must be reported separately.

Although mainland China has not yet officially announced the implementation schedule for CRS 2.0, starting from 2025, tax authorities in multiple regions will notify taxpayers via phone calls, text messages, and other methods to self-assess and report offshore income for the years 2022 to 2024 and pay taxes accordingly. It is reported that CRS 2.0 will not only fully expose offshore-held crypto assets to tax supervision but may also trigger coordinated investigations by other regulatory agencies.