G20 Advances “International Cryptocurrency Framework”: Push for Global Transaction Data Sharing

From the Digifinex blog.

G20’s New Crypto Initiative

Leaders of the G20, an intergovernmental forum of 20 major economies, are vigorously advocating for the rapid implementation of an international framework for cross-border crypto assets.

According to Indian media, this cross-border crypto framework aims to facilitate inter-country cryptocurrency transaction data sharing, set to commence from 2027.

(Image via Run The Chain News

Summit Resolution

G20 leaders, at their summit, signed a communiqué declaring, “We urge swift implementation of the Crypto Assets Reporting Framework (CARF) and revisions to the Common Reporting Standard (CRS). We call for the Global Forum on Transparency and Exchange of Information for Tax Purposes to determine an appropriate and harmonized timetable for jurisdictions to commence exchanges.”

This forthcoming cross-border crypto framework will impact several countries, including Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the UK, the USA, and the EU. Together, the G20 encompasses two-thirds of the global population.

OECD’s Initial Proposal

The Organization for Economic Co-operation and Development (OECD) first introduced the Crypto Assets Reporting Framework in October 2022. This document aims to better inform tax authorities about cryptocurrency transactions and the individuals behind them.

According to the proposed framework, countries will need to automatically exchange information about cryptocurrency transactions annually. This will encompass transactions from unregulated cryptocurrency exchanges and wallet service providers.

(Image via Crypto Council for Innovation

Adopted Reporting Standards

Many nations have already mandated adherence to new disclosure and reporting standards for crypto transactions. For instance, in May of this year, the EU approved updated rules mandating compliance with CARF, establishing a protocol for sharing tax information between European governments. According to these new regulations, digital asset transfers should be accompanied by the recipient’s name, wallet address, and account number.

Endorsement of Financial Stability Board’s Recommendations

Furthermore, G20’s statement also endorsed the Financial Stability Board’s recommendations related to the “regulation, oversight, and monitoring of crypto asset activities and markets, as well as global stablecoin arrangements.” These include establishing standards for stablecoins analogous to commercial banks and urging regulatory bodies to prohibit activities that hinder participant identification.

Keywords: G20, International Cryptocurrency Framework, Crypto Assets Reporting Framework, CARF, Common Reporting Standard, CRS, OECD, EU, Financial Stability Board, cross-border crypto assets

This article came directly from the Digifinex blog, found on https://blog.digifinex.com/2023/09/12/g20-advances-international-cryptocurrency-framework-push-for-global-transaction-data-sharing/

Latest News