Leaders of the G20 Group have agreed to speed up the implementation of a global framework for crypto assets. The group has reached a consensus during a two-day summit in New Delhi, under the G20 Presidency of India, to facilitate information exchange between countries starting in 2027.
The summit has also endorsed recommendations from the Financial Stability Board (FSB) for regulating, supervising, and overseeing crypto-assets and global stablecoin arrangements. These recommendations aim to bring cryptocurrencies under a regulatory umbrella similar to traditional banking.
The G20’s efforts are aimed at increasing global coordination and ensuring that no one is left behind in the implementation of the 2030 Agenda for Sustainable Development.
G20 Group on Crypto Regulations
The G20 leaders have signed a consensus declaration calling for the swift implementation of the Crypto-Asset Reporting Framework (CARF) and amendments to the Common Reporting Standard (CRS). They have also asked the Global Forum on Transparency and Exchange of Information for Tax Purposes to identify an appropriate and coordinated timeline to commence exchanges by relevant jurisdictions.
The CARF was introduced in October 2022 by the Organization for Economic Cooperation and Development (OECD) to provide tax authorities with greater visibility into crypto transactions. The framework would automatically exchange information on crypto transactions between jurisdictions annually, covering transactions on unregulated crypto exchanges and wallet providers.
Several countries, including Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom and the United States, as well as the European Union, would be affected by the upcoming framework.
G20 Group Endorsing Suggestions From FSB & IMF
The G20 group also backed Financial Stability Board suggestions for “regulation, supervision, and oversight of crypto-assets activities and markets, as well as global stablecoin arrangements.” The suggestions, which were published in July, set comparable rules for stablecoins as commercial banks and urge regulators to prohibit any acts that impede the identity of interested individuals, among other things.
Apart from that, the International Monetary Fund (IMF) has also played a key role in developing the global response to this issue. The IMF’s Deputy Managing Director Gita Gopinath dug into the details of this program in an exclusive discussion with Business Today.
Gopinath began by underscoring the importance of this collaboration, emphasizing that it is about more than just regulatory issues, but also about macro-financial ramifications. For the first time, the Financial Stability Board and the IMF have joined forces to handle crypto asset regulation holistically, recognizing the need for a comprehensive approach. The fundamental goal is to identify essential policy actions that strike a balance between regulation and financial stability.
Conclusion
The G20’s recent summit in New Delhi marks a significant step towards establishing a comprehensive global regulatory framework for cryptocurrencies. Leaders from G20 nations have pledged to expedite the implementation of this framework, aiming to commence information exchange among countries by 2027.
This move signifies a commitment to bring crypto assets under regulatory oversight similar to traditional banking, endorsed by recommendations from the Financial Stability Board. With the introduction of the CARF and support from the IMF, this collaborative effort not only addresses regulatory concerns but also recognizes the macro-financial implications of crypto assets.
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