Leaders of the world’s 20 largest economies, collectively known as the G20, are pushing for the rapid implementation of a cross-border framework for crypto assets.
According to local reports in New Delhi – where members of the organization are participating in the two-day summit – the framework will facilitate the exchange of information between countries starting in 2027.
“We call for the swift implementation of the Crypto-Asset Reporting Framework (CARF) and CRS Amendments [Common Reporting Standard]. We ask the Global Forum for Tax Transparency and Information Exchange to determine an appropriate and coordinated timetable for relevant jurisdictions to begin exchanges,” said the consensus statement signed by G20 leaders.
Several countries will be affected by the upcoming framework, including Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United States, United Kingdom and United States and European Union. Two-thirds of the world’s population live in G20 countries.
At the G20 Summit’s “One Family” session, details were elaborated on how collective thinking can empower fellow humans to make our planet more inclusive and sustainable.
Give examples of how technology can be used to make a positive difference in people’s lives… pic.twitter.com/SqT9OjStps
— Narendra Modi (@narendramodi) September 9, 2023
The Organization for Economic Cooperation and Development (OECD) first launched a cryptoasset reporting framework in October 2022. The document aims to give tax authorities a better understanding of cryptocurrency transactions and the individuals behind them.
Under the proposed framework, countries will automatically exchange information on cryptocurrency transactions between jurisdictions on an annual basis, covering transactions by unregulated cryptocurrency exchanges and wallet providers.
Cryptocurrency trading is already subject to new disclosure standards in many countries. In May, the EU approved updated rules for compliance with CARF, setting out procedures for automatic information sharing between European governments for tax purposes. According to the new rules, transfers of digital assets should be accompanied by the beneficiary’s name, the beneficiary’s distributed ledger address, and the beneficiary’s account number.
The organization also endorsed the Financial Stability Board’s (FSB) recommendations for “regulatory, supervisory and oversight of crypto-asset activities and markets and global stablecoin arrangements,” the announcement said. The recommendation, released in July, sets similar standards for stablecoins as those for commercial banks and urges regulators to prohibit any activities that hinder the identification of relevant participants.
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