G20 moves forward with international crypto framework
Leaders of the 20 biggest economies in the world — collectively known as G20 — are pushing for a speedy implementation of a cross-border framework for crypto assets.
According to local reports in New Delhi — where the group members are attending for a two-day summit — the framework will facilitate information exchange between countries beginning 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,” noted a consensus declaration signed by G20 leaders.
Several countries would 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, the United Kingdom and the United States, as well as the European Union. Two-thirds of the world’s population lives in a G20 country.
At the One Family Session of the G20 Summit, elaborated on how to collectively think about empowering fellow humans and making our planet more inclusive as well as sustainable.
Gave the example of how technology has been leveraged to bring a positive difference in the lives of… pic.twitter.com/SqT9OjStps
— Narendra Modi (@narendramodi) September 9, 2023
The Crypto-Asset Reporting Framework was first introduced in October 2022 by the Organization for Economic Cooperation and Development (OECD). The document was designed to give tax authorities greater visibility into crypto transactions, as well as the individuals behind them.
Under the proposed framework, countries would automatically exchange information on crypto transactions between jurisdictions annually, covering transactions on unregulated crypto exchanges and wallet providers.
Crypto transactions are already subject to new disclosure standards in many countries. In May, the European Union approved updated rules to adhere to the CARF, setting procedures for automatic information sharing between European governments for tax purposes. As per the new rules, transfer of digital assets should be accompanied by the name of the beneficiary, the beneficiary’s distributed ledger address, as well as the beneficiary’s account number.
The group also endorsed recommendations from the Financial Stability Board (FSB) 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.
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