MANILA - The Philippines' Department of Finance (DOF) has said the country will implement a framework on crypto-assets to combat cross-border tax evasion and illicit financial flows.

"We need faster and stronger systems for collaboration if we are to beat tax evasion and illicit transactions," Finance Secretary Ralph Recto said in a statement on Tuesday.

"This is a 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," Recto said.

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The DOF said the commitment to execute the crypto-asset reporting framework (CARF) by 2028 was signified by DOF Revenue Operations Group Undersecretary Charlito Martin Mendoza during the 8th Asia Initiative Meeting held in the Maldives in May.

The CARF institutionalizes the framework for the reporting and automatic exchange of information in relation to crypto assets between tax authorities for tax compliance purposes.