During a recent two-day meeting in New Delhi, the leaders of the world’s 20 largest economies, known as the G20, issued a joint call for the swift implementation of new regulations to track crypto asset transactions. These regulations named the Crypto-Asset Reporting Framework (CARF), were initially proposed by the OECD in October 2022.
The CARF aims to facilitate government oversight of crypto assets by enhancing transparency. It achieves this through an automated process that annually mandates countries to share information on crypto asset transactions. This requirement extends to unregulated cryptocurrency platforms and encompasses comprehensive details about involved individuals, including their names and relevant particulars.
Some countries, including those within the European Union, have already embraced similar regulations regarding cryptocurrencies. These regulations now necessitate that individuals provide their information, such as their names and other relevant details, when conducting cryptocurrency transfers. This measure enables governments to effectively monitor these transactions for taxation purposes.
G20 Unifies for Crypto Regulation
The Financial Stability Board (FSB), an organization supported by G20 leaders, has put forth recommendations relating to the regulation and supervision of cryptocurrency activities and markets. These recommendations also encompass stablecoins, a type of cryptocurrency designed to maintain a steady value. However, the G20 leaders have jointly issued a statement requesting a synchronized plan for sharing information on crypto asset transactions across nations by 2027.
At the One Family Session of the G20 Summit, elaborated on how to collectively think about empowering fellow humans and making our planet more inclusive as well as sustainable.
Gave the example of how technology has been leveraged to bring a positive difference in the lives of… pic.twitter.com/SqT9OjStps
— Narendra Modi (@narendramodi) September 9, 2023
This plan will have a significant impact on numerous countries worldwide, 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. These regions collectively house the majority of the global population.
The G20’s recent call for prompt action on the CARF represents a significant milestone in global cryptocurrency regulation. Its purpose is to enhance transparency and accountability in crypto asset transactions. Moreover, experts anticipate that this initiative will foster collaboration among nations in combating unlawful activities involving digital currencies.