September 11, 2023

G20 Tackles Implementing Cross-Border Framework for Crypto Assets



The G20, which consists of the leaders of the largest 20 economies in the world, is advocating for the swift implementation of a cross-border framework for crypto assets.

During a two-day summit in New Delhi, it was reported that the framework will enable countries to exchange information starting 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.

The upcoming framework will impact multiple countries, 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. It’s worth noting that two-thirds of the world’s population resides in a G20 country.

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 and the individuals behind them.

As per the proposed framework, countries would exchange information on crypto transactions between jurisdictions every year. This would cover transactions on unregulated crypto exchanges and wallet providers. Many countries have already implemented new disclosure standards for crypto transactions.

In May, the European Union approved updated rules to follow the CARF, which requires automatic information sharing between European governments for tax purposes. Under these rules, the transfer of digital assets should be accompanied by the name of the beneficiary, their distributed ledger address, and account number.

Additionally, the group has endorsed recommendations from the Financial Stability Board (FSB) for regulating, supervising, and overseeing crypto-assets activities and markets and global stablecoin arrangements. These recommendations, published in July, establish similar standards for stablecoins as commercial banks and urge regulators to prohibit any activities that hinder the identification of involved participants, among other recommendations.

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