The world’s economic powerhouses, the G20 nations, are making significant strides in establishing a unified approach to cryptocurrency. This forthcoming strategy aims to enhance transparency across borders by sharing data on crypto transactions annually.
From the recent summit in New Delhi, it’s clear that by 2027, a system will be in place to facilitate this exchange of information between member countries.
The G20 leaders collectively voiced their support, emphasizing the urgency of rolling out the Crypto-Asset Reporting Framework (CARF) and making necessary adjustments to the Common Reporting Standard (CRS). Their goal? To set a clear timeline for the Global Forum on Transparency and Exchange of Information for Tax Purposes.
This move will have ripple effects across major nations, spanning from Argentina to the United States, and even the European Union. To put it into perspective, two-thirds of the global population resides in these G20 nations. The inception of CARF by the Organization for Economic Cooperation and Development in October 2022 marked the beginning of this journey. Its primary objective is to provide tax agencies with a clearer picture of crypto dealings and the parties involved.
The framework proposes an annual exchange of crypto transaction data, focusing on transactions that occur on non-regulated crypto platforms and wallet services.
Many countries have already updated their crypto disclosure norms. For instance, the European Union, earlier this year, established guidelines in line with CARF, emphasizing the importance of sharing details during digital asset transfers.
Furthermore, the G20 has given a nod to the Financial Stability Board’s suggestions on crypto regulation, which were released in July. These guidelines equate stablecoins with traditional banking standards and stress the importance of transparency in all crypto-related activities.
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