The Inland Revenue Authority of Singapore (IRAS) recently announced that Singapore will implement CRS 2.0 (Common Reporting Standard) from January 1, 2027, with first reporting in 2028. 

Representatives from InvestaX attended IRAS's Crypto-Asset Reporting Framework (CARF) Industry Engagement Session on June 24, 2025 where this announcement was made to industry participants in the presence of some officials from the Global Forum on Transparency and Exchange of Information for Tax Purposes.

Why This Matters for Global Tax Transparency

The financial world has changed rapidly with the rise of crypto-assets and new digital financial products. These innovations, designed for easy cross-border transfer and value storage outside traditional systems, created gaps in existing global tax transparency standards (Automatic Exchange of Information - AEOI).

To close these gaps and protect global tax transparency, the OECD's Crypto-Asset Reporting Framework (CARF), alongside CRS 2.0, ensures that "Relevant Crypto-Assets" are now part of international tax reporting.

The Direct Impact on Tokenized Assets

This update has a direct impact on the tokenized asset market. Tokenized Assets and/or Security tokens are likely to fall under the definition of "Relevant Crypto-Assets" and as such any exchange of such “Relevant Crypto Assets” must be reported under CARF. 

This means that the inherent transparency of blockchain technology will now be complemented by a clear and internationally harmonized tax reporting framework.

What This Means for The Market?

This news carries distinct implications for the key players shaping the tokenized asset market:

• For financial institutions issuing tokenized assets: This brings much-needed regulatory clarity. While requiring system and process updates, it fosters a more predictable and robust environment, solidifying Singapore's standing as a responsible digital asset hub.
• For institutional investors: It significantly enhances transparency and lowers regulatory risk for tokenized asset investments. It shows the market is maturing, with global tax reporting standards now applied. This boosts confidence and can lead to more institutional capital and greater liquidity. (According to IRAS data, in 2024, 90% of countries used CRS information for tax audits and 85% for risk assessments, showing how effective these frameworks are).

What’s more, this provision reinforces the reality that tax obligations apply equally to digital assets. It sends a strong message that digital currencies and tokenized assets are now treated with the same rigor as fiat currencies when it comes to tax and reporting requirements. This shift addresses early skepticism around tax-related loopholes in the digital asset space, affirming the regulator’s commitment to treating digital finance on par with traditional finance. 

The Realities of Implementation: What Comes Next?

While these developments enhance regulatory clarity and market confidence, it's important to acknowledge the practical implications for all market participants. For financial institutions like InvestaX and reporting crypto-asset service providers, this will involve:

• System and Process Updates: Adapting to CRS 2.0 and CARF means firms will need to update existing systems and processes to properly capture and report the new details required for digital assets.
• Having the Necessary Resources to Manage Filings: With CRS 2.0 and CARF being introduced for the first time firms will need to ensure they have the appropriate resources and the right tools to support accurate and timely annual filings.
• Enhanced Data Visibility and Due Diligence: This initiative means that the previous anonymity sometimes associated with certain digital asset transactions will be systematically addressed for tax purposes.
• Clarifying Scope and Coverage: As CARF introduces new categories of reportable activities, there may be ambiguity around which digital asset activities fall within scope. Reporting crypto asset service providers will need to interpret the framework carefully, possibly with legal or tax advisory support, to ensure full compliance from day one.
• Reporting Under CRS 2.0 and CARF : Financial Institutions already reporting under the existing CRS for traditional securities must now assess how to complement CARF reporting requirements. Understanding these intersections is essential to avoid duplication or gaps in compliance.

These efforts, while demanding, are essential for bringing digital assets fully into the mainstream financial ecosystem, building trust, and ensuring a fair and transparent market for everyone.

🇸🇬  Singapore's Leadership in Digital Assets

Singapore has consistently been a leader in the financial industry, embracing both traditional finance and digital assets. This move to adopt CRS 2.0 further strengthens its reputation as a responsible and forward-thinking digital asset hub.

The Monetary Authority of Singapore (MAS) has long treated tokenized assets as securities under the Securities and Futures Act, licensing platforms like InvestaX under existing Capital Markets Services (CMS) and Recognized Market Operator (RMO) frameworks. MAS has also spearheaded major tokenization initiatives, such as Project e-VCC (tokenizing Variable Capital Companies) and Project Guardian, which has seen MAS partner with 24 financial institutions to pilot tokenized bonds, deposits, and funds. In 2024, MAS announced plans to commercialize asset tokenization under Project Guardian, moving from trials to full adoption.

This consistent leadership, now including the adoption of CRS 2.0, makes Singapore an ideal jurisdiction for financial institutions seeking regulatory clarity for their digital asset strategies.

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About CRS 2.0: CRS 2.0 refers to the amended Common Reporting Standard (CRS), an international standard for the automatic exchange of financial account information between tax authorities globally. It was developed by the Organisation for Economic Co-operation and Development (OECD) to combat tax evasion and promote tax transparency. More information can be found on IRAS. 

About CARF: CARF, or the Crypto-Asset Reporting Framework, is a new global standard introduced by the OECD in response to the growing use of crypto-assets in financial transactions. It is designed to ensure the automatic exchange of tax-relevant information on crypto-asset transactions between jurisdictions, in a consistent and standardized format. More details are available from the OECD’s official publication.