Crypto-asset framework up for implementation

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June 18, 2025 | 12:00am

MANILA, Philippines — The Philippines is looking to implement an Organization for Economic Cooperation and Development (OECD)-led crypto-asset reporting framework (CARF) in a bid to address cross-border tax evasion and illicit financial flows.

In a statement, the Department of Finance (DOF) has committed to execute the CARF by 2028 as part of the administration’s agenda of improving fiscal discipline through efficient and transparent tax administration.

Introduced by the OECD, CARF is a set of rules that provides guidance on how to report cryptocurrency transactions and comply with anti-money laundering and counter-terrorist financing regulations.

It also aims to achieve crypto-asset transparency through annual, automatic exchange of information among countries whose residents are engaging in such activity.

DOF’s commitment came after the Philippines’ participation in the recent 8th Asia Initiative Meeting in Maldives, an annual platform for tax authorities in the region.

Finance Secretary Ralph Recto said there is a need for faster and stronger systems for collaboration in order for the country to combat tax evasion and illicit transactions.

“This is a timely commitment as digital currency becomes one of the preferred means for transactions,” Recto said.

“The government must ensure that crypto-asset users are paying their fair share of taxes and that no illicit financial activity goes unpunished,” he said.

As such, the Philippines joins 67 other jurisdictions already committed to implementing the CARF in the next three years.

Further, the DOF boasted its administrative reforms to strengthen the exchange of information (EOI) on request, steps taken to prepare for the enhanced monitoring process and the efforts made to adopt the common reporting standards.

It was in 2023 when the Philippines joined the Asia Initiative to promote the implementation of internationally agreed-upon standards on transparency and EOI, as well as the use of tax transparency standards to tackle tax evasion and other illicit financial flows.

The DOF said that adhering to tax transparency standards is crucial considering that at least 24 billion euros in additional revenue over the past 15 years has been identified through EOI requests, offshore investigation, automatic exchange of financial account information and related voluntary disclosure programs.