G20 moves forward with international crypto framework

Leaders of the world's 20 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 the group's members will attend a two-day summit, the framework ease exchange of information between countries from 2027.

“We call for the rapid implementation of the Crypto Asset Reporting Framework (CARF) and amendments to the CRS. [Common Reporting Standard]. “We request the Global Forum on Transparency and Exchange of Information for Tax Purposes to identify an appropriate and coordinated timeline to begin exchanges between relevant jurisdictions,” says a consensus statement signed by G20 leaders.

Several countries would 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 . United Kingdom and the United States, as well as the European Union. Two-thirds of the world's population lives in a G20 country.

The Cryptoasset 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, as well as the people behind them.

Under the proposed framework, countries would automatically exchange information on crypto transactions between jurisdictions annually, covering transactions on unregulated crypto exchanges and wallet providers.

Crypto transactions are already subject to new disclosure standards in many countries. In May, the European Union approved updated rules to join the CARF, establishing procedures for the automatic exchange of information between European governments for tax purposes. Under 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 Financial Stability Board's (FSB) recommendations for the "regulation, supervision and surveillance of cryptoasset activities and markets and of global stablecoin arrangements," according to the announcement. Published in July, the recommendations set similar standards for stablecoins such as commercial banks, and urge regulators to prohibit any activity that hinders the identification of the participants involved, among other recommendations.

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