Tax services in the US, Australia, Canada, the Netherlands and the UK will now cooperate in a new alliance designed to combat “the growing threat to tax administrations posed by cryptocurrencies and cybercrime and to make the most of data and technology”- as announced by the regulator's web-page.
Why it is important
- Taking into account the specifics of money laundering committed with help of cryptocurrency, representatives of the Joint are sure that banks can no longer rely on traditional principles in the fight against financial crimes. Therefore, the regulators suggest that credit organizations of the five countries should work together.
The new collaboration is dubbed “J5” and includes government officials of global tax enforcement whose goal will be to strengthen international control over cryptocrimes. Tax authorities of the five countries will work together to gather and exchange information, conduct joint investigations and operations, expand each other's opportunities through innovative technologies, and increase the capacity of tax crime enforcement officials.
“We are convinced that offshore structures and financial instruments, where used to commit tax crime and money laundering, are detrimental to the economic, fiscal, and social interests of our countries. We will work together to investigate those who enable transnational tax crime and money laundering and those who benefit from it. We will also collaborate internationally to reduce the growing threat to tax administrations posed by cryptocurrencies and cybercrime and to make the most of data and technology,” states the announcement.
It is also noted that J5 will cooperate with the International Organization for Economic Cooperation and Development (OECD), dealing with the initiative on which the union was found.
Earlier in May US and Canadian state securities regulators initiated dozens of investigations into cryptocurrency scams. 40 Securities agencies from the US and Canada launched their check-ups on existing and future ICO’s in order to fight fraud. Implementation measures earned its code name “Operation Cryptosweep”.
By Nadya Astam