DoF: Crypto framework effective by 2028

The Department of Finance (DoF) aims to implement a cryptocurrency framework by 2028 as governments worldwide intensify efforts against cross-border tax evasion and illegal fund transfers.

In a statement, DoF said the Crypto-Asset Reporting Framework will require global tax agencies to automatically report cryptocurrency activities.

"This is timely commitment as digital currency becomes one of the preferred means for transactions. The government must ensure that crypto-asset users are paying their fair share of taxes and that no illicit financial activity goes unpunished," said DoF Secretary Ralph Recto.

DoF shared that 67 other countries and jurisdictions, including 10 in Asia, have vowed to execute the framework during the 8th Asia Initiative Meeting in Malé, Maldives.

In an interview last January, Recto said he expects more Filipinos to participate in cryptocurrency or crypto activities as the government establishes comprehensive regulations on the digital assets, integrating insights from the US.

"Many Filipinos have invested in cryptocurrencies worth around P6 trillion," he said.

"I expect more crypto investments, especially with the digital economy. Ninety million Filipinos have e-wallets, and the population has a median age of 25 and they're interested in crypto," Recto added.

Cryptocurrencies are virtual assets people can trade and use to purchase various items and services. Like stocks, the values of cryptocurrencies change depending on supply and demand. They are traded in crypto exchange platforms through apps and their proceeds are deposited in e-wallets and other financial apps.

According to cryptocurrency market watcher Coinbase, the price of Bitcoin, which is one of the most popular cryptocurrencies, has increased by 57.3 percent in a one-year period.