The world of Cryptocurrencies never stands still, and this is reaffirmed by the recent move by the G20, the group of the world’s twenty largest economies, which is currently meeting in India. They have increased their efforts to implement an international crypto regulatory framework.
New crypto legislation worldwide
G20 leaders are committed to the rapid implementation of an international regulatory framework for crypto. according to a Economic Times report In New Delhi, where the group’s members are currently taking part in a two-day summit, it appears that the framework will have to contribute to the exchange of information between countries from 2027.
It Crypto asset reporting framework (CARF), as the framework would be called, aims to streamline the regulation of crypto worldwide.
“We demand rapid implementation of the CARF and changes to the CRS (Common Reporting Standard). “We ask the Global Forum on Transparency and Exchange of Information for Tax Purposes to establish an appropriate and coordinated timetable for initiating exchanges between relevant jurisdictions,” said a joint statement from the G20 leaders.
This framework will affect a range of countries, from Argentina and Australia to China and the United States and the European Union. Here too we can feel the effects.
The importance of CARF and its impact
What is the purpose of the new regulations? This includes giving tax authorities better insight into crypto transactions and the people behind them. CARF would allow countries to automatically share information about crypto transactions between different jurisdictions every year, even about transactions on unregulated exchanges.
Although this will be a thorn in the side of many crypto users, it increasingly appears that governments want to gain more control over the crypto industry.
We also see other initiatives in the background: in May of this year, for example, the European Union adopted rules that already correspond to the CARF. These new rules stipulate that the transmission of crypto includes the name, address and e.g. B. the address of the beneficiary must be attachedn the account number. The time of complete anonymity seems to be coming to an end.
As the cryptocurrency world continues to grow and evolve, so does the call for regulation. While some see regulation as a challenge, it can also be seen as an essential step towards legitimizing cryptocurrencies on the global stage.