“We continue to closely monitor the risks of the fast-paced developments in the cryptoasset ecosystem,” the declaration read.
G20, Leaders of the world’s 20 largest economies met over the weekend on 9 and 10 of September to discuss new crypto rules as part of the theme “one earth, one family, one future.”
The meeting held in New Delhi, India as the country moves to decide on its own crypto legal framework in the coming months.
G20 leaders work on new crypto rules
The G20 leaders met for two days in New Delhi before issuing a declaration on Sunday. The policy and regulation of crypto assets and central bank digital currency (CBDC) are covered in a section of the 37-page declaration.
“We continue to closely monitor the risks of the fast-paced developments in the cryptoasset ecosystem,” the declaration read. “We endorse the Financial Stability Board’s (FSB’s) high-level recommendations for the regulation, supervision, and oversight of crypto-assets activities and markets and of global stablecoin arrangements.”
During the summit, the leaders of the countries present signed a consensus declaration urging the implementation of a Crypto-Asset Reporting Framework (CARF) and amendments to the Common Reporting Standard (CRS). These new amendments are expected to have a significant impact on crypto users globally.
This new framework will allow countries to exchange information between jurisdictions, covering all types of exchanges and wallet providers. It will also expose to tax authorities better visibility into cryptocurrencies and assets and who owns them.
In October 2022, CARF was first introduced by the Organisation for Economic Cooperation and Development (OECD). It is designed to give tax authorities more transparency into crypto transactions.
“We call for the swift implementation of the Crypto-Asset Reporting Framework and amendments to the CRS,” read a declaration signed by G20 leaders.
Other Frameworks under works
The G20 leaders also considered “the shared FSB and SSBs [Standard-Setting Bodies] workplan,” “the IMF-FSB Synthesis Paper,” and “the BIS Report on The Crypto Ecosystem: Key Elements and Risks.”
The FSB and IMF submitted a roadmap for the coordinated creation of a policy and regulatory framework to the G20 in a synthesis paper earlier.
A thorough assessment of hazards is included in this plan, with a special emphasis on emerging markets and developing nations.
In order to successfully combat money laundering and the funding of terrorism, the G20 pledged to apply the Financial Action Task Force (FATF) standards around the globe.
Nirmala Sitharaman, the finance minister of India, stated earlier this month that the G20 countries are working towards establishing a global framework for crypto assets while India is the G20 Presidency.
The Financial Stability Board (FSB) of India released a proposal in July that would serve as the blueprint for an international regulatory framework for digital assets.
Early August, the Asian nation published its “Presidency Note as an input for a Roadmap on Establishing a Global Framework for Crypto Assets.”
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