Tokenized Assets Can Fall Outside Crypto Reporting, OECD Says

Tokenized instruments issued by traditional financial institutions can fall outside the scope of the OECD’s upcoming crypto reporting framework, according to new guidance released by the organization Thursday.

A digitally issued or tokenized financial asset doesn’t qualify as a crypto asset if it can “be held by and transferred through custodial accounts” maintained by traditional financial institutions and where they can’t be transferred in a decentralized manner, the Organization for Economic Cooperation and Development said in an updated Frequently Asked Questions, which act as guidance for countries.

The OECD-led Crypto-Asset Reporting Framework, or CARF, will facilitate ...