Due to the ever-changing nature of cryptocurrency technology, it is always subject to regulatory revisions around the world. The G20 group of 20 developed economies has chosen to address this issue by adopting a unified approach to designing a comprehensive cryptocurrency rulebook.
At the G20 summit in New Delhi, global leaders agreed to establish a comprehensive framework for cryptocurrencies. In an effort to expand transparency on digital assets, the approved consensus statement includes information sharing between countries.
The consensus statement signed by the G20 leaders is as follows:
We call for the swift implementation of the Crypto-Assets Reporting Framework (CARF) and CRS (Common Reporting Standard) amendments. We ask the Global Forum on Transparency and Exchange of Information for Tax Purposes to determine an appropriate and coordinated timeline for relevant jurisdictions to begin exchanging information.
G20 calls for sharing of deal details
The G20 presidency has stepped up support for global coordination, including the Financial Stability Board (FSB), to oversee the issuance of digital crypto assets and stablecoins, the implementation of which would allow cryptocurrency companies to operate under the supervision of common financial regulators such as banks.
Under the proposed regulatory framework, cryptocurrency companies will automatically share transaction details with jurisdictions on an annual basis. Reports say the regulation will come into effect in 2027. Notably, it also covers unregistered cryptocurrency platforms and wallet providers whose data was leaked.
The G20 declaration document urges the rapid implementation of the Crypto-Asset Reporting Framework (CARF) and the Common Reporting Standard (CRS) to increase global transparency in the taxation of cryptocurrency exchanges. In addition, the proposed rules will help financial regulators track illegal transactions to prevent money laundering and other financial crimes.
CARF was originally launched with the goal of disclosing valuable transaction details to tax authorities. The Organization for Economic Cooperation and Development (OECD) first launched CARF in October 2022 for tax collection purposes.
Notably, the European Union updated its cryptocurrency rulebook in May, adding CARF. Any transactions conducted on crypto platforms must disclose details between European countries, including usernames, account numbers, and blockchain addresses.
The total cryptocurrency market value is currently hovering at $1.018 trillion on the daily chart. | Source: TradingView.com
G20 presidency to develop unified regulations
Nevertheless, central bank governors and finance ministers of G20 countries will hold further negotiations on the remaining procedures in October 2023. The International Monetary Fund (IMF) and the FSB will work together to pave the way for a global regulatory framework for the crypto industry.
G20 countries are home to nearly two-thirds of the world's population, so the framework will mainly affect countries such as Australia, Argentina, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Turkey, the United Kingdom and the United States. Countries such as South Korea, Saudi Arabia, Mexico and the European Union also fall into the same category. #G20 #加密货币