The leaders of the world’s top 20 economies have started working on the rapid implementation of a cross-border framework for crypto assets. The Crypto Asset Reporting Framework is an initiative aimed at making crypto transactions and the individuals behind these transactions more visible to tax authorities, and it includes automatic information sharing among jurisdictions, including unregulated crypto exchanges and wallet providers. Additionally, the group also endorsed the recommendations of the Financial Stability Board on global stablecoin regulations.
Timeline Set for Legal Framework
According to local news in New Delhi, where the group members attended a two-day summit, the legal framework will facilitate information exchange between countries starting from 2027. The consensus statement signed by G20 leaders stated:
“We call for the rapid implementation of the Crypto Asset Reporting Framework and changes to the Common Reporting Standard (CRS). We ask the jurisdictions concerned to establish an appropriate and coordinated timeline for the initiation of exchanges by the Global Forum on Transparency and Exchange of Information for Tax Purposes.”
Many countries, including Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, the United States, and the European Union, will be affected by the upcoming framework.
What Does the Project Cover?
The Crypto Asset Reporting Framework was first introduced by the Organisation for Economic Co-operation and Development (OECD) in October 2022. The document is designed to provide more visibility to tax authorities regarding crypto transactions and the individuals behind them. Under the proposed framework, countries will automatically exchange information on crypto asset transactions among jurisdictions, including transactions on unregulated crypto exchanges and wallet providers. Crypto transactions are already subject to new tracking standards in many countries. In May, the European Union approved updated rules to comply with the Common Reporting Standard for automatic exchange of information for tax purposes among European governments. According to the new rules, the transfer of crypto assets must be accompanied by the user’s username, user address, and user account number.
The group also endorsed the recommendations of the Financial Stability Board (FSB) on “the regulation, supervision, and oversight of crypto asset activities and markets, as well as global stablecoin regulations.” The recommendations, published in July, establish similar standards for stablecoins as commercial banks and call on regulators to prohibit any activity that hinders the identification of relevant participants, among other recommendations.
