G20 moves forward on international crypto framework

The leaders of the world’s twenty largest economies – collectively known as the group of Twenty – are pushing for the rapid implementation of a cross-border framework for crypto assets.

According to local reports in New Delhi – where members of the group are attending a two-day summit-the framework will also facilitate the exchange of information between countries starting in 2027.

We ask the global forum for transparency and exchange of information for tax purposes to set an appropriate and coordinated schedule for the start of exchanges between the relevant jurisdictions.

Many countries will be affected by the upcoming framework, including Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey and the United States. The United Kingdom and the United States, as well as the European Union. Two thirds of the world’s population lives in one of the countries of the group of twenty.

The crypto asset reporting framework was first introduced in October 2022 by the organization for Economic Cooperation and Development (OECD). The document is designed to give tax authorities greater visibility into cryptocurrency transactions, as well as the individuals behind them.

Under the proposed framework, countries will automatically exchange information on cryptocurrency transactions between jurisdictions annually, covering transactions on unregulated cryptocurrency exchanges and wallet providers.

Cryptocurrency transactions are already subject to new disclosure standards in many countries. In May, the EU approved updated rules for compliance with CARF, establishing procedures for the automatic exchange of information between European governments for tax purposes. According to the new rules, the transfer of digital assets must be accompanied by the beneficiary’s name, the beneficiary’s distributed ledger address, as well as the beneficiary’s account number.

The group also endorsed the recommendations of the Financial Stability Board (FSB) on “regulation, supervision and supervision of the activities and markets of crypto-assets and global stablecoin arrangements,” according to the announcement. The recommendations, published in July, set similar standards for stablecoins such as commercial banks, and urge regulators to ban any activities that hinder the identification of the participants involved, among other recommendations.