G20 leaders decide on swift implementation of crypto reporting framework (2024)

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G20 leaders decide on swift implementation of crypto reporting framework? ›

Synopsis. The G-20 leaders have agreed on the swift implementation of a reporting framework for crypto assets to prevent tax evasion. The framework, known as the Crypto Asset Reporting Framework (CARF), aims to ensure that non-financial assets like cryptocurrencies are not used to conceal unaccounted wealth.

The G20 finance ministers and central bank governors have adopted a roadmap for the implementation of a comprehensive policy framework for crypto assets. The roadmap, based on recommendations by the IMF and FSB, focuses on regulations rather than a ban to prevent crypto assets from destabilizing the economy.

The G20 Finance Ministers and Central Bank Governors (FMCBG) adopted a new regulatory roadmap for crypto assets at a meeting in Marrakech, Morocco, on October 13, 2023. The roadmap represents a step away from an outright ban, focusing instead on proactive and collaborative oversight.

OECD Global Forum response

The report also contains broader revisions to the existing Common Reporting Standard (CRS). That report was subsequently adopted by the OECD in June 2023, and CRS and CARF together form the International Standards for Automatic Exchange of Information in Tax Matters.

In this session, patitipants discussed inclusive growth, the SDGs, health and other issues. G20 members confirmed the importance of reducing poverty and inequality, accelerating efforts toward the achivement of SDGs, and preparing for pamdemic.

The decision by the G20 leaders to grant permanent member status to the African Union (which represents 55 African member states) acknowledges the growing roleof the emerging countries from the Global South. Several side events took place on the margins of the summit.

The International Organization of Securities Commissions has also laid out its 18 recommendations for global rules on managing crypto and digital assets. The World Economic Forum's Pathways to the Regulation of Crypto-Assets details key regulatory developments over the past few years.

In its capacity to regulate cryptocurrency, the IRS evaluates crypto assets within the context of the tax code. Typically, the money an individual gains or loses from securities and commodities transactions over the course of a given year are reported to the IRS by their broker.

While Bitcoin is welcomed in many parts of the world, several countries are wary of its volatility and decentralized nature. Some also perceive it as a threat to their current monetary systems while being concerned about its use to support illicit activities like drug trafficking, money laundering, and terrorism.

The CARF is a new global standard requiring the collection, reporting and exchange of tax information on the customers of crypto-asset service providers. It has been developed by the Organisation for Economic Cooperation and Development (OECD) to prevent the use of virtual assets for tax evasion purposes.

What is the US regulatory framework for crypto? ›

At the federal level, the following bodies are responsible for making the required cryptocurrency regulation in the US – the Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), the Federal Trade Commission (FTC), the Treasury Department, through the Internal Revenue Service (IRS), ...

China is officially one of the world's toughest jurisdictions for cryptocurrencies. Beijing banned crypto trading in 2021, and authorities have since detained, fined and jailed people working in the sector.

Cryptocurrencies are a portrayal of a brand-new decentralization model for money. They also help to combat the monopoly of a currency and free money from control. No government organizations can set the worthiness of the coin or flow, and that crypto enthusiasts think makes cryptocurrencies secure and safe.

FTX was a leading cryptocurrency exchange that went bankrupt in November 2022 amid allegations that its owners had embezzled and misused customer funds. Sam Bankman-Fried, the CEO of the exchange, was sentenced to 25 years in prison and ordered to repay $11 billion.

Working groups this year will focus on global priority areas such as green development, climate finance, inclusive growth, digital economy, public infrastructure, technology transformation, and reforms for women empowerment for socio-economic progress.