Known for its attitudes towards cryptocurrencies, the West may now be preparing to abandon such policies. G20 leaders continue their work to study crypto regulations.
Organization for Economic Co-operation and Development (OECD) On Monday, he presented a framework to the G20 to increase international transparency in crypto.
Koinfinans.com As we have announced, the G20 is comprised of twenty participating member countries, including China, India, South Korea, Brazil, the USA, the United Kingdom and the European Union, among which Turkey. In April 2021, the G20 tasked the OECD to develop a method for automating cryptocurrency tax reporting across countries.
The G20 Finance Ministers and Federal Reserve Governors will meet at their next meeting in Washington this Wednesday and Thursday, with a 100-page report with proposed changes to the group’s Common Reporting Standard (CRS). Crypto Asset Reporting Framework (CARF) announced that they will be reviewed.
The OECD first adopted CARF in August, a report the group calls a “transparency initiative” for crypto. Among other developments, it offers definitions of what “crypto assets” and NFTs are, a scheme for automated international crypto tax reporting, and includes provisions for cryptocurrency derivatives trading.
According to a statement from the OECD, cryptocurrencies will not currently be covered by the CRS, which is designed to prevent international tax evasion.
The OECD argues that because crypto is not covered by current standards, there is “the potential for them to be used for tax evasion while undermining progress in tax transparency through the adoption of the CRS.”
World leaders recognize that crypto is a trillion-dollar industry and that some illegal traders may abuse the unauthorized and sometimes pseudonymous nature of crypto to evade sanctions, taxes, or engage in other illegal activities.
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