At the recent summit held in New Delhi, the G20 countries, which consist of the largest economies in the world, confirmed their intention to work together on an international framework to regulate cryptocurrencies. This cooperation, which is expected to start in 2027, mainly focuses on exchanging data on cryptocurrency transactions between countries.
Known as the Crypto Asset Reporting Framework (CARF), this initiative is a project that aims to give tax authorities around the world more knowledge about cryptocurrency transactions. This is a step beyond current regulations in many countries, where knowledge regarding transactions is limited to national borders.
The EU has already taken measures in line with CARF, including requiring digital transactions to be accompanied by specific information such as the beneficiary’s name and account number.
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This international framework aims not only to increase the transparency of cryptocurrency transactions, but also to strengthen supervision and regulation of cryptocurrency-related activities and markets, including stablecoins.
Since most of the world’s citizens live in one of the G20 countries, the implications of this cooperation could be important for the future of the digital economy.
Countries affected by this upcoming framework include Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, and the United States. countries and the European Union. This means that two-thirds of the world’s population lives in one of the G20 countries.
The CARF was first introduced in October 2022 by the OECD. The aim was to give tax authorities more knowledge about cryptocurrency transactions and the people involved. Under this framework, countries will automatically exchange information on cryptocurrency transactions annually, including transactions on unregulated cryptocurrency exchanges and with wallet providers.
New standards for cryptocurrency disclosure have already been adopted in the European Union. In May, the rules were updated to comply with CARF, which established procedures for the automatic exchange of information between European governments for tax purposes.
