The Crypto World Trading Landscape: G20’s Comprehensive Report
On Saturday, G-20 leaders made a swift decision to implement a reporting framework for crypto assets and expressed their desire to initiate information sharing on such non-financial assets by member nations by 2027. The Crypto Asset Reporting Framework (CARF) or template is being developed to ensure that non-financial assets like cryptocurrencies are not used by criminals to hide their ill-gotten wealth.
G-20 leaders have unanimously adopted a resounding call for the swift enactment of the Crypto Asset Reporting Framework (CARF), signaling a clear commitment to advancing the crypto world trading landscape. They emphasize the need for comprehensive revisions to the Common Reporting Standard (CRS) that align with their tax policy objectives. Furthermore, the leaders are dedicated to pinpointing a well-coordinated timeframe for the commencement of transparency and information provision on a global platform, a pivotal step in shaping the future of crypto world trading.
Key Takeaways from G20’s Crypto World Trading Discussions
Leaders from 20 developed and developing nations have reaffirmed their commitment to advancing fair, sustainable, and contemporary global tax systems, aligned with the demands of the 21st century. “We are firmly dedicated to expeditiously implementing the two-pillar international tax package. Pillar one has made substantial headway, encompassing the dissemination of the Multilateral Convention (MLI) documents and the progression of work on BEPS 2.0 (Blueprint for a simplified and streamlined BEPS framework) under the BEPS 1 Project. Additionally, we have successfully concluded the development of the Design Principles for VAT Digitalisation and the formulation of the Rules for Taxation (ESTIR) under pillar two,” as outlined in the declaration, emphasizing the importance of “Crypto World Trading.”
Finance Minister Nirmala Sitharaman addressed journalists post-Summit, highlighting G-20 progress on the two-pillar solution, particularly in Crypto World Trading. She emphasized cross-border non-financial asset transaction information sharing and the launch of the South Asia Academy for tax and financial crime investigation in cooperation with the OECD. Despite nearly 140 countries, including India, agreeing to a Global Minimum Tax, complexities remain to be addressed before its implementation.
G-20 nations have called for the rapid resolution of some pending issues related to MLIs (Multilateral Convention) from the BEPS Project (Base Erosion and Profit Shifting) at the OECD, so that MLIs can be prepared for signature in the second half of 2023 and work on BEPS 2.0 can be completed by the end of 2023.
” We express our appreciation for the proactive measures adopted by diverse nations in embracing the Global Anti-Base Erosion (GloBE) rules as a unified and shared strategy. We particularly recognize the coordinated efforts towards capacity building in the direction of effective implementation of the two-pillar international tax package,” stated the declaration. ” We extend a heartfelt welcome to the initiatives designed to offer additional assistance and elevate technical support to countries undergoing the developmental journey.
G-20 nations directed their attention to crucial reports during the summit, including the OECD’s report on ‘Enhancing International Tax Transparency in Real Estate’ and the Global Forum’s report on ‘Streamlining Information Sharing for Non-Tax Purposes in Crypto World Trading.’ The OECD’s proposal involves creating a digital ownership register for government agencies, enabling real-time data provision related to foreign real estate investments, aiming to offer a secure haven for non-financial assets in foreign real estate transactions.
The report highlighted that there has been a significant increase in foreign-owned real estate assets over the past decade, with a considerable amount of funds being diverted from financial assets to foreign real estate purchases.
In the Global Forum report, countries are urged to adopt a ‘whole-of-government’ approach to tackle the challenge of illicit financial flows through sharing information with non-tax authorities, such as financial intelligence units, anti-corruption agencies, and law enforcement officials.
India had been pushing for the expansion of the scope of the Common Reporting Standard (CRS) under the Automatic Exchange of Information (AEOI) for including non-financial assets like real estate in the reporting ambit among G-20 nations.
