The leaders of the world’s twenty largest economies – known collectively 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 group are attending a two-day summit – the framework will be as well Easy Information exchange between countries, starting in 2027.
“We call for the rapid implementation of the Crypto Asset Reporting Framework (CARF) and amendments to the Consolidated Standards for Crypto Asset Reporting [Common Reporting Standard]. We request the Global Forum on Transparency and Exchange of Information for Tax Purposes to set an appropriate and coordinated timetable for the commencement of exchanges between relevant jurisdictions.
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 and the United States. The Kingdom and the United States, as well as the European Union. Two-thirds of the world’s population lives in one of the G20 countries.
In the G20 Summit’s One Family session, we discussed how to think collectively about empowering our fellow human beings and making our planet more inclusive and sustainable.
He gave an example of how technology can be leveraged to make a positive difference in the lives of… pic.twitter.com/SqT9OjStps
– Narendra Modi (@narendramudi) September 9, 2023
The Cryptoassets Reporting Framework was first introduced in October 2022 by the Organization for Economic Co-operation and Development (OECD). The document is designed to give tax authorities greater visibility into cryptocurrency transactions, as well as the individuals behind them.
Under the proposed framework, countries would automatically exchange information on cryptocurrency transactions between jurisdictions annually, covering transactions on unregulated cryptocurrency exchanges and wallet providers.
Cryptocurrency transactions are already subject to new disclosure standards in several countries. In May, the EU agreed to updated rules for complying with CARF, establishing procedures for the automatic exchange of information between European governments for tax purposes. According to the new rules, the transfer of digital assets must be accompanied by the name of the beneficiary, the address of the beneficiary’s distributed ledger, as well as the beneficiary’s account number.
The group also endorsed the recommendations of the Financial Stability Board (FSB) on the “regulation, supervision and oversight of crypto-asset activities and markets and global stablecoin arrangements,” according to the announcement. The recommendations, published in July, set similar standards for stablecoins as commercial banks, and urge regulators to prohibit any activities that hinder the identification of relevant participants, among other recommendations.
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