World leaders and investors agree: crypto is a potential and extremely promising market. The proof, it is currently valued at a trillion dollars. However, the cryptosphere faces a major problem: the lack or absence of a regulatory framework. Result: crypto platforms and traders easily escape sanctions and taxes. To put an end to this situation, the G20 will study the regulatory framework of the crypto market this week. Many points will certainly be addressed.
G20 meeting: crypto regulation on the agenda!
The next G20 meeting will be held in Washington on Wednesday and Thursday. It will see the participation of finance ministers and central bank governors of member countries. These include the United States, China, the United Kingdom, India, South Korea and the European Union.
On the sidelines of this meeting, on October 10, the OECD submitted a 100-page report to the G20. This document will allow this entity to define the international standards of the crypto market in terms of transparency.
Note that the OECD (Organization for Economic Co-operation and Development) has been expressly mandated by the G20. Its mission: to develop action plans and standards in order to automate the tax declaration of a crypto between the member countries of the G20 (and this, for the sake of transparency).
Regulation of the crypto market on track
In August, the OECD adopted the CARF, or “transparency initiative” for crypto. This is a report that notably defines what crypto assets and NFTs really are. The CARF also includes an automatic reporting plan for international cryptocurrency taxes. During the G20 meeting, all the fundamental points of this regulatory framework will be scrutinized.
Still with the aim of regulating the cryptocurrency market, the G20 will also focus on the suggested modifications to the CRS (Common Reporting Standard) or NCD developed by the OECD in 2014. It focuses mainly on fiscal transparency.
Concretely, the CRS establishes a worldwide standard for the automatic exchange of information relating to financial accounts. It was set up in order to fight effectively against international tax evasion. Recently, the OECD submitted proposed amendments to the CRS/CRS. These changes relate in particular to the definition of central bank digital currencies.
Regulation of the crypto market does not only benefit investors. A clear and concise regulatory framework would also prove beneficial in the event of legal proceedings. This can, for example, make it easier for Do Kwon of Terra, who is currently on Interpol’s red list. Same thing for Michael Saylor, prosecuted for alleged tax evasion.
Since the advent of crypto, relevant authorities have been working to regularize and regulate the market. Many actions have also been implemented in this direction. Nevertheless, much remains to be done in terms of regulation. Let’s wait until the end of the G20 meeting to find out more!
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