G20 calls for ‘swift’ creation of crypto tax reporting rules and info exchange

G20 leaders are moving rapidly toward a Crypto Asset Reporting Framework, according to a report from The Times of India on Sept. 9.

That framework would see G20 member countries collect and share information about the use of cryptocurrency and digital assets. This data would be used to ensure that those who use cryptocurrency are not evading taxes.

G20 leaders emphasized that the plan should be enacted quickly, writing:

“We call for the swift implementation of the Crypto-Asset Reporting Framework (“CARF”) and amendments to the [common reporting standard] CRS.”

In the same statement, leaders asked the Global Forum on Transparency and Exchange of Information for Tax Purposes to determine a timeline to begin the information exchange program. The involved countries reportedly aim to begin the program by 2027.

The Times of India said that the G20 leaders’ declaration 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 Financial Stability Board (FSB) will define the “contours” of the crypto framework. That statement was printed in a separate report from Livemint.

G20 has broader tax plans

While the G20 leaders’ latest statements in part focus on cryptocurrency reporting, the group intends to reform tax reporting more broadly. The common reporting standard (CRS) is intended to apply to other non-financial assets, such as real estate.

Furthermore, approximately 140 countries, including India aim to create an international, two-pillar tax program that will compel many multinational companies to pay minimum taxes — though this has not been implemented yet.

G20 leaders additionally expressed their desire for a governing body for stablecoins in a paper published on Sept. 7. That report suggests that stablecoins can cause volatility and introduce risks to financial stability, necessitating new regulation.

India’s central role in the latest developments is since it is currently hosting the 2023 G20 summit in its capital city, New Delhi.

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