According to a report by The Times of India on September 9, G20 leaders are moving quickly towards a Crypto Asset Reporting Framework.
That framework would ensure that G20 member states collect and share information on the use of cryptocurrency and digital assets. This data would be used to ensure that those using cryptocurrency do not avoid taxes.
G20 leaders stressed the need for swift implementation of the plan, writing:
“We call for the rapid implementation of the Crypto-Asset Reporting Framework (“CARF”) and changes thereto [common reporting standard] CRS.”
In the same statement, leaders asked the Global Forum on Transparency and Exchange of Information for Tax Purposes to set a timeline for launching the information exchange program. The countries involved are reportedly aiming to start the program in 2027.
The Times of India said the G20 leaders’ statement was adopted by consensus, but did not describe the next steps toward creating a framework.
India’s Union Finance Minister Nirmala Sitharaman suggested that the International Monetary Fund (IMF) and the Financial Stability Board (FSB) will define the “contours” of the crypto framework. That statement was printed in a separate report from Livemint.
The G20 has broader tax plans
While the G20 leaders’ latest statements focus in part on cryptocurrency reporting, the group plans to reform tax reporting more broadly. The Common Reporting Standard (CRS) is intended to apply to other non-financial assets, such as real estate.
In addition, around 140 countries, including India, are aiming to create an international, two-pillar tax program that will force many multinational companies to pay minimum taxes – although this has not yet been implemented.
G20 leaders additionally expressed their desire for a governing body for stablecoins in an article published on September 7. That report suggests that stablecoins could cause volatility and introduce risks to financial stability, necessitating new regulations.
India’s central role in the latest developments lies in the fact that India is currently hosting the 2023 G20 Summit in the capital New Delhi.
The G20 post calling for ‘swift’ creation of crypto tax reporting rules and information sharing first appeared on CryptoSlate.