The OSCE gathered 18 participants from the State Revenue Committee and the Central Bank of the Republic of Armenia to dive into virtual asset taxation during a workshop organized by the Office of the Co-ordinator of OSCE Economic and Environmental Activities (OCEEA) on 14-15 March in Yerevan.
Through interactive case studies and practical examples, participants examined the complexities of taxing various virtual asset transactions, from crypto mining and staking to the taxation of digital art and virtual real estate in the Metaverse. The workshop also covered critical regulatory frameworks, including international standards and upcoming regulations that will shape the future of virtual asset taxation.
Participants engaged in detailed discussions on the unique challenges of taxing virtual assets compared to traditional assets, emphasizing the necessity of understanding the evolving landscape of cryptocurrencies. They also had the opportunity to exchange opinions with representatives from the National Bank of Georgia on virtual assets taxation, which provided additional perspectives and insights into regional practices and challenges in the field.
A key focus of the workshop was compliance and enforcement strategies, highlighting the importance of robust mechanisms for monitoring and regulating virtual asset service providers. Participants discussed best practices in record-keeping, reporting and addressing the jurisdictional challenges inherent in the decentralized nature of digital assets.
"The digital financial landscape is continuously evolving, bringing to the fore the critical need for comprehensive regulations, particularly concerning virtual assets. As these assets become increasingly integral to our financial systems, understanding their implications and establishing robust frameworks for their taxation is paramount," said Vera Strobachova-Budway, Senior Economic Officer at OCEEA.
"The collaborative environment and the exchange of insights and experiences are invaluable in shaping proactive and informed policies in the face of the digital economy's complexities," she added.
The workshop is part of an OSCE-led extra-budgetary project on "Innovative policy solutions to mitigate money-laundering risks of virtual assets", funded by Germany, Poland, Romania, the United Kingdom and the United States. The project supports OSCE participating States in building national capacities to mitigate criminal risks related to virtual assets and cryptocurrencies.
