G20 Nations Reach Consensus on Global Crypto Framework

G-20 countries agree on Global Crypto Framework

The leaders of the world's 20 largest economies, collectively known as the G20. Emphasizing early implementation of cross border framework for crypto assets. G20 members participated in the two-day summit in Delhi. Where it was decided that the crypto framework will facilitate exchange of information between G20 countries from 2027. “We call for early implementation of the Crypto-Asset Reporting Framework (CARF) and amendments to the CRS (Common Reporting Standard),” said a consensus declaration signed by G20 leaders. We are asking the Global Forum on Transparency and Exchange of Information for Tax Purposes to identify a reasonable and coordinated timeline for jurisdictions to begin exchanging information.

Many countries will be affected by the upcoming framework, including Argentina, Australia, Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, The United Kingdom, United States and European Union are included. About two-thirds of the world's population lives in G20 countries.

The crypto-asset reporting framework was first introduced by the Organization for Economic Co-operation and Development in October 2022. The document was designed to give tax authorities visibility into crypto transactions as well as the individuals behind them. Under the proposed framework, countries across jurisdictions will exchange information on crypto transactions throughout the year, including transactions by unregulated crypto exchanges and wallet providers. The group also endorsed the Financial Stability Board's recommendations for regulation, observation and inspection of crypto asset activities and markets and the global stable coin regime.The recommendation sets standards for stablecoins similar to those of commercial banks.

Consent on synthesis paper also

The G-20 leaders' announcement also endorsed recommendations by the Financial Stability Board (FSB) to regulate and supervise crypto asset activities. It welcomed a synthesis paper from the International Monetary Fund (IMF) and the FSB, which includes a roadmap for a regulatory framework that takes into account risks specific to emerging markets and those related to money laundering and terror financing. Finance ministers and central bank governors of the G-20 countries will discuss taking this roadmap forward at a meeting in Marrakesh next month.

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