G20 Leaders Encourage Fast Implementation Of Cross-border Crypto Asset Framework

Leaders of the world's 20 largest economies known as the G20, are pushing for the fast implementation of the cross-border crypto asset framework. (photo: twitter @narendramodi)

Leaders of the world's 20 largest economies known as the G20, are pushing for the fast implementation of the cross-border crypto asset framework. According to local reports in New Delhi - where members of the group attended the two-day meeting - the framework will facilitate information exchange between countries starting in 2027.

"We call for the fast implementation of the Crypto Asset Reporting Framework or CARF) framework and changes to the General Reporting Standard (Common Reporting Standard or CRS). We ask the Global Forum on Transparency and Exchange of Information for Tax Purposes to identify appropriate and coordinated schedules to initiate exchanges by relevant jurisdictions," reads a consensus statement signed by the G20 leader.

A number of countries will be affected by this upcoming framework, including Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, Britain, the United States, and the European Union. Two-thirds of the world's population lives in the G20 country.

The Crypto Asset Reporting Framework was first introduced in October 2022 by the Organization for Economic Cooperation and Development. The document is designed to provide tax authorities with more visibility of crypto transactions, as well as individuals behind it.

Within the proposed framework, the countries will automatically exchange information about inter-judicial crypto transactions annually, including 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 the latest rules to comply with CARF, establishing an automated information exchange procedure between European governments for tax purposes. In accordance with these new rules, digital asset transfers must be accompanied by the recipient's name, distributed ledger address, and recipient account number.

The group also supports recommendations from the Financial Stability Council for "regulation, supervision, and supervision of crypto asset activities and markets as well as global stablecoin settings," in accordance with the announcement. Published in July, the recommendation sets similar standards for stablecoins such as commercial banks and encourages regulators to ban any activity that hinders the identification of participants involved, among other recommendations.