Leaders of the Group of 20 (G20) nations have made a significant step towards greater transparency in cryptocurrency transactions. During the recent G20 summit held in India, a comprehensive declaration was announced, signaling international consensus on the regulation of crypto assets. While implementation may be a lengthy process, this move holds the potential to put an end to the misuse of cryptocurrencies for tax evasion purposes.
Monitoring the Rapid Evolution of Crypto Assets
The G20 declaration emphasized the need to closely monitor the risks associated with the rapidly evolving crypto-asset ecosystem. In support of this objective, the Financial Stability Board's latest recommendations on the supervision and regulation of crypto markets were endorsed. These recommendations, released by the FSB - a G20 body responsible for overseeing the global financial system, highlight the importance of segregating client funds, maintaining clear separation of business functions, and regulating stablecoin issuers in a similar manner as banks.
Adoption of the Crypto Asset Reporting Framework (CARF)
Encouraging Regulatory Progress
While global regulations for cryptocurrencies are still taking shape, the G20's ability to reach consensus on frameworks represents a significant milestone. This achievement is a strong indication that regulatory progress is possible. Earlier this year, the European Union implemented comprehensive crypto regulations. However, progress in the United States has been slower, with prospects for the passage of crypto laws by Congress this year appearing increasingly unlikely.