Leaders from the world's 20 largest economies, collectively referred to as the G20, are actively promoting the rapid implementation of a global framework for managing crypto assets. During a two-day summit in New Delhi, reports emerged detailing plans for this framework, which will enable the automatic exchange of information between nations beginning in 2027.
In a consensus declaration signed by G20 leaders, the call for swift implementation of the Crypto-Asset Reporting Framework (CARF) and amendments to the Common Reporting Standard (CRS) was made. The Global Forum on Transparency and Exchange of Information for Tax Purposes was tasked with coordinating the timeline for initiating exchanges among relevant jurisdictions.
This forthcoming framework will impact numerous 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, where two-thirds of the world's population resides.
The Crypto-Asset Reporting Framework, introduced by the Organization for Economic Cooperation and Development in October 2022, aims to provide tax authorities with greater visibility into crypto transactions and their associated individuals.
Under the proposed framework, countries will automatically share information on crypto transactions between jurisdictions on an annual basis. This includes transactions occurring on unregulated crypto exchanges and wallet providers.
Many countries have already implemented new disclosure standards for crypto transactions. In May, the European Union approved updated rules aligning with CARF, outlining procedures for the automatic exchange of information between European governments for tax purposes. The new rules require the transfer of digital assets to be accompanied by the beneficiary's name, distributed ledger address, and account number.
Additionally, the G20 leaders endorsed recommendations from the Financial Stability Board related to the regulation, supervision, and oversight of crypto-assets activities and markets, as well as global stablecoin arrangements. These recommendations, published in July, establish standards for stablecoins comparable to those for commercial banks and call on regulators to prevent activities that obstruct the identification of involved participants, among other measures.
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