FATCA
A US law requiring foreign financial institutions to report US account holders' assets, including crypto held through certain foreign platforms, to US tax authorities.
FATCA (the Foreign Account Tax Compliance Act) is a US law requiring foreign financial institutions to identify and report US account holders' assets to US tax authorities, specifically to prevent US taxpayers from using foreign accounts to hide income or assets, including crypto held through certain foreign platforms, from US reporting.
FATCA is a US-specific compliance framework, distinct from the Common Reporting Standard (see Kaavon's "Common Reporting Standard (CRS)" glossary definition), which plays a broadly similar role for many other countries' tax authorities instead.
Examples
- A US person holding crypto through certain foreign exchanges or platforms may have that holding reported to US tax authorities under FATCA.
- FATCA is specifically a US compliance framework; most other countries' equivalent cross-border reporting instead falls under the Common Reporting Standard.