The G20 summit held in New Delhi was a historic meeting as far for cryptocurrency. The leaders from different countries want to make a set of rules and regulations. Many of them said that it is important to have these rules for more economic and financial stability. The G20 finance ministers will have more discussion in October 2023.
Highlights of Joint Declaration at G20 Summit
The G20 summit leaders have endorsed the Financial Stability Board’s high-level suggestions. These suggestions will have a positive impact on the crypto market. Furthermore, they also want more stablecoin arrangements at the global level. Some favor laws in which individuals must mention the name while sending cryptocurrency. They should also send their account number and cryptocurrency address. The leaders claim that this may lead to more transparency of Bitcoin transactions for tax purposes.
The other most important highlight of the joint declaration is that the G20 wants fast implementation of the CARF. They also support major changes to the Common Reporting Standard. This is because of the rapid growth of the crypto-asset market.
Common Reporting Framework (CARF) in G20 Summit
The G20 leaders and participants of the summit want to further develop CARF. This is because it will provide information on tax. Transactions may become safer and transparent. The CARF deals with the information exchange of crypto assets within taxpayer’s jurisdictions. There are no financial intermediaries dealing with crypto assets. The framework is developing since 2021. When the crypto industry started witnessing huge market capitalization.
The G20 summit leaders have emphasized data management too. This is because some form of due diligence can ensure that investors safely invest money.
The framework also supports that crypto asset firms must give regular information to the country in which they operate. Furthermore, the CARF mandates that exchanges between fiat currencies and relevant crypto assets. Any kind of transfer of crypto must be reported on relevant platforms.
PM Modi’s Views on Cryptocurrency in G20 Summit
The Indian Prime Minister Narendra Modi said that cyberspace has become a source of funding terrorism. That is why a framework for cyber security is needed. According to him, cryptocurrency is the new criteria for social order, financial awareness, and stability. Therefore, global standards can regulate it. This will improve the feeling of “One Future”. The Indian Finance Minister Nirmala Sitaraman also expressed similar views.
Likely impact of G20 summit’s decisions on Indian Taxpayers
The G20 leadership summit was also taking cues from an OECD report on tax transparency. Currently, the tax laws and jurisdictions are restricting information through international tax treaties. At the G20 summit, the leaders agreed that a new method can simplify the application of tax treaties. This may help law enforcement agencies to track down tax evaders in India.
The G20 summit was historic for the cryptocurrency sector. The heads of the countries were not interested in banning cryptocurrencies. Most have changed their views. Now they only want to regulate cryptocurrencies through a common international framework.
The intentions are noble now because the leaders simply want better transparency. Many also want more security for crypto-related transactions. This is good news for all crypto enthusiasts.