G20 Pushes for Global Crypto Reporting System

The G20 leaders, representing the 20 most influential global economies, are advocating for a prompt roll-out of a cross-border crypto framework. This stance emerged from their two-day summit in New Delhi, where they discussed the worldwide implications of digital assets.

As per the meeting details, this framework aims to begin information sharing among member nations by 2027. The G20 leaders unanimously stated, “We call for the swift implementation of the Crypto-Asset Reporting Framework (CARF) and amendments to the CRS [Common Reporting Standard]. We ask the Global Forum on Transparency and Exchange of Information for Tax Purposes to determine a synchronized timeline to kickstart exchanges by relevant jurisdictions.”

Countries expected to be impacted by this new directive include powerhouses like the United States, China, India, Russia, and the UK, among others including the European Union. Notably, about two-thirds of the global population resides in these G20 nations.

Originated by the Organization for Economic Cooperation and Development (OECD) in October 2022, the CARF was crafted to enhance tax authorities’ insight into crypto dealings and associated individuals. According to this framework, member countries would annually share data on crypto transactions, focusing on those linked to unregulated exchanges and wallet providers.

Interestingly, crypto operations are now under tighter scrutiny in several jurisdictions. For instance, the European Union had, in May, aligned its policies with the CARF, instituting guidelines for member nations to share information related to digital asset transfers. As dictated by these guidelines, any transfer must disclose the beneficiary’s name, their distributed ledger address, and their account details.