A week ago, India’s Finance Minister expressed her desire to present a unified cryptocurrency regulation proposal to G20 members. Last Saturday’s summit appears to have taken her proposal into account. Here’s the scoop!
Towards Transparent Crypto Regulation!
The evolution of the cryptocurrency sector has continually disrupted the global financial landscape. The most savvy jurisdictions are seeking to regulate this sector to reap its benefits.
As we recently mentioned in one of our articles, India’s Finance Minister, Nirmala Sitharaman, had proposed establishing a unique regulatory framework for the cryptocurrency sector that would be applicable to all countries.
This proposal was to be reviewed and potentially approved by the G20. Fortunately for the minister, things seem to have moved in the direction she hoped for.
At last Saturday’s G20 summit held in New Delhi, global leaders agreed to develop a global framework for cryptocurrencies, focused on enhanced transparency of digital assets.
In this regard, a consensus declaration was ratified by these leaders, emphasizing the rapid implementation of the Crypto-Asset Reporting Framework (CARF).
We call for the rapid implementation of the Crypto-Asset Reporting Framework (CARF) and modifications to the CRS (Common Reporting Standard). We request the Global Forum on Transparency and Exchange of Information for Tax Purposes to define an adequate and coordinated timetable to initiate exchanges between competent jurisdictions.Excerpt from the document
The G20’s Vision on the Crypto Sector Goes Beyond Mere Regulation
The direction taken by the G20 goes beyond the simple quest for transparency. The G20 presidency plans to closely oversee the issuance of crypto assets and stablecoins.
The goal is clear: to allow companies in the crypto sector to operate under a regulatory framework similar to that of banking institutions.
Starting in 2027, the global regulatory framework will require companies in the crypto sector to annually disclose the details of their transactions to various jurisdictions.
Armed with this information, financial regulators hope to monitor suspicious activities, thereby effectively combating money laundering and other financial offenses.
The road to comprehensive regulation remains, however, winding. Further discussions are planned for October 2023. The International Monetary Fund (IMF) and the FSB will play a decisive role in defining this regulatory framework on a global scale.
Coming from a journalism university background, I came across Bitcoin and cryptocurrencies not long ago.
The potential of the Blockchain seduced me and I made it my research topic.