G20 Leaders Urgently Pledge to Implement Crypto Asset Reporting Framework (CARF) and Embrace IMF and FSB Synthesis Paper
During the recent G20 summit, presided over by India, member nations reached a unanimous decision to swiftly implement a worldwide framework for the regulation of cryptocurrencies.
The CARF, a reporting template currently under development, is specifically crafted to combat tax evasion facilitated by the illicit use of non-financial crypto assets.
Member nations have set their sights on commencing information exchange related to these assets no later than 2027.
G20 Leaders Urge Speedy Adoption of the CARF
The G20 Leaders’ declaration, adopted unanimously, explicitly called for the swift implementation of CARF and amendments to the Common Reporting Standard (CRS), reported PTI.
This strategic approach seeks to establish a coordinated timeline for the exchange of information by relevant jurisdictions, addressing concerns about the potential misuse of cryptocurrencies for illicit purposes.
One of the chief drivers behind this determination is the imperative for a thorough regulation of cryptocurrencies and digital assets.
The G20’s objective is to minimize the potential dangers linked to these digital currencies, such as the risk of illicit proceeds being laundered through them, or even more concerning, diverted towards the funding of terrorism or real estate investments.
G20 Leaders Embrace FSB and IMF’s Recommendations for Crypto Regulation
The G20’s statement additionally ratified the high-level recommendations from the Financial Stability Board (FSB) concerning the oversight and control of crypto-asset operations and markets.
To guarantee uniformity in the worldwide strategy and to discourage regulatory disparities, the G20 urged the FSB and relevant sector-specific standard-setting bodies (SSBs) to expedite the efficient and punctual execution of these guidelines.
As previously noted, an amalgamated report presented to the G20 by the FSB and IMF set forth a roadmap for synchronized development of a policy and regulatory structure. This blueprint encompasses a thorough examination of risks, with particular attention given to emerging markets and developing economies.
Furthermore, the G20’s declaration included a commitment to the global implementation of the Financial Action Task Force (FATF) standards, aimed at effectively combatting money laundering and the financing of terrorism.
These pivotal decisions are slated for further discussion and consideration by Finance Ministers and Central Bank Governors at their upcoming meeting in October 2023.
