The G20, a group representing the 20 largest global economies, is vigorously pursuing the implementation of an international framework for cryptocurrency assets.
This plan, set to kick off in 2027, aims to facilitate the exchange of information between countries, providing a transparent overview of all crypto transactions.
The initiative was first proposed by the Organization for Economic Cooperation and Development (OECD) in October 2022 to give tax authorities a clearer view of cryptocurrency transactions and their participants.
This Crypto-Asset Reporting Framework (CARF) would require countries to regularly exchange information on crypto transactions, including those carried out on unregulated exchanges and wallet providers.
The G20’s endorsement, which includes nations like the United States, United Kingdom, China, and others, affects two-thirds of the world’s population, making it a major step towards global crypto transparency.
In recent developments, the European Union has already updated its rules in line with the CARF.
The new guidelines require the transfer of digital assets to include the recipient’s name, their digital ledger address, and account number.
This move is viewed as a step towards fostering automatic information sharing among European governments for tax purposes.
Furthermore, the G20 has backed the Financial Stability Board’s recommendations for regulating crypto-assets activities, markets, and global stablecoin arrangements.
Similar to the standards applied to commercial banks, these guidelines discourage activities that obstruct participant identification, among other measures.
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