Leaders of the world’s 20 largest economies — known collectively as the G20 — are pushing for rapid implementation of a cross-border framework for the cryptoassets.
According to local reports from New Delhithe framework will facilitate the information exchange between countries from 2027.
“We ask for the rapid application 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 a appropriate calendar and coordinated for relevant jurisdictions to begin exchanges“says a consensus statement signed by G20 leaders.
Several countries would be affected by the next framework, including Germany, Saudi Arabia, Argentina, Australia, Brazil, Canada, China, South Korea, the United States, France, India, Indonesia, Italy, Japan, Mexico, the United Kingdom, Russia, South Africa and Turkey, as well as the European Union. Two-thirds of the world’s population lives in a G20 country.
Cryptocurrencies: important advance of the G20
The Organization for Economic Cooperation and Development (OECD) introduced the reporting framework for the first time in October 2022 cryptocurrencies. The document was designed to give tax authorities greater visibility of crypto transactions, as well as the people behind them.
Under the proposed framework, countries would automatically exchange information on cryptotransactions between jurisdictions annually, covering transactions in exchanges unregulated cryptocurrency exchanges and providers wallets.
Crypto transactions are already subject to new disclosure rules in many countries. In May, the European Union approved updated rules for joining CARF, establishing procedures for automatic exchange of information between European governments for tax purposes. According to the new rules, the transfer of digital assets It must be accompanied by the name of the beneficiary, his address in the distributed ledger and his account number.
The group also endorsed the recommendations of the Financial Stability Board (CEF) for the “regulation, supervision and surveillance of cryptoasset activities and markets and global stablecoin agreements“, according to the announcement. The recommendations establish for stablecoins standards similar to those of the commercial banksand urge regulators to prohibit any activity that makes it difficult to identify the participants involved, among other recommendations.
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