G20 Moves Forward With International Crypto Framework – The G20, comprised of leaders from the world’s top 20 economies, is advocating for the swift adoption of a global framework for cryptocurrency assets during their two-day summit in New Delhi. As per reports, this framework is set to enable the sharing of information between nations starting in 2027.
“We call for the swift implementation of the Crypto-Asset Reporting Framework (CARF) and amendments to the CRS [Common Reporting Standard] . We ask the Global Forum on Transparency and Exchange of Information for Tax Purposes to identify an appropriate and coordinated timeline to commence exchanges by relevant jurisdictions,” stated a consensus declaration signed by G20 leaders.
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The forthcoming framework will have repercussions for numerous nations, encompassing Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, the United States, and the European Union. It’s worth noting that G20 countries are home to approximately two-thirds of the global population.
The Crypto-Asset Reporting Framework, initiated by the Organization for Economic Cooperation and Development in October 2022, aims to enhance transparency for tax authorities regarding cryptocurrency transactions and their participants. Within this proposed framework, nations would annually exchange data on cryptocurrency transactions across borders, encompassing those occurring on unregulated crypto exchanges and wallet service providers.
Numerous countries have already implemented heightened disclosure requirements for cryptocurrency transactions. In May, the European Union ratified updated regulations in alignment with CARF, establishing protocols for automatic data sharing among European governments for tax purposes. According to these new regulations, digital asset transfers should include the beneficiary’s name, their distributed ledger address, and their account number.
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The group also endorsed recommendations from the Financial Stability Board for the “regulation, supervision and oversight of crypto-assets activities and markets and of global stablecoin arrangements,” according to the announcement. Published in July, the recommendations set similar standards for stablecoins as commercial banks and urge regulators to prohibit any activities hindering the identification of involved participants, among other recommendations.