G20’s Steps Towards a Global Crypto Revolution by 2027
Leaders from the world’s top 20 economies, collectively known as the G20, are endorsing the swift implementation of a cross-border framework for cryptocurrency assets.
Reports from the ongoing two-day summit in New Delhi suggest that this framework will facilitate international information sharing among countries, starting in the year 2027.
A consensus statement signed by G20 leaders states, “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.”
The upcoming framework will affect numerous nations, including Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, the United States, and the European Union. G20 countries alone account for two-thirds of the world’s population.
The Crypto-Asset Reporting Framework was introduced by the Organisation for Economic Cooperation and Development in October 2022, aiming to enhance the ability of tax authorities to monitor cryptocurrency transactions and identify individuals involved.
According to the proposed framework, nations would annually exchange information on cryptocurrency transactions automatically across borders, covering transactions conducted on unregulated cryptocurrency exchanges and wallet providers.
Many countries have already implemented new disclosure requirements for cryptocurrency transactions. In May, the European Union ratified updated regulations aligning with CARF, outlining procedures for the automatic sharing of tax-related information among European governments. These regulations mandate that digital asset transfers include the beneficiary’s name, distributed ledger address, and account number.
Additionally, the group has endorsed recommendations from the Financial Stability Board regarding the regulation, supervision, and oversight of crypto-assets activities and markets and global stablecoin arrangements.”
These recommendations, released in July, establish standards for stablecoins equivalent to those applied to traditional banks. They also urge regulators to prohibit activities obstructing the identification of parties involved in transactions, among other guidelines.
The international cryptocurrency market has witnessed regulatory discussions recently, with developments in the US and Australia, including the Senate Committee’s rejection of pivotal crypto legislation..
