G20: International Crypto Framework is a Go!

The Framework involves crypto asset reporting and was initially introduced by the Organization for Economic Cooperation and Development (OECD) in October 2022. Its primary objective is to provide tax authorities with enhanced visibility into cryptocurrency transactions and the individuals associated with them.

Under this proposed framework, countries would engage in the automatic exchange of information on cryptocurrency transactions across borders on an annual basis. This exchange would encompass transactions on unregulated cryptocurrency exchanges and wallet service providers.

It’s worth noting that various countries have already implemented new disclosure standards for cryptocurrency transactions. In May, the European Union ratified updated regulations to align with the Crypto-Asset Reporting Framework, establishing procedures for the automatic sharing of information among European governments for taxation purposes. These regulations stipulate that the transfer of digital assets should include the recipient’s name, their distributed ledger address, as well as their account number.

Furthermore, the OECD endorsed recommendations from the Financial Stability Board regarding the regulation, supervision, and oversight of cryptocurrency activities and markets, along with global stablecoin arrangements. These recommendations, released in July, establish standards for stablecoins equivalent to those applied to traditional commercial banks. They also encourage regulators to prohibit any activities that hinder the identification of participants involved in these transactions, among other guidelines.

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