G20 Summit 2023 : Major Decision on cryptocurrency, Agreement on Creating Global Regulatory Framework

The G20 leaders, in the Delhi Declaration, have backed the FSB’s recommendations for regulating cryptocurrencies. They also stressed their commitment to keeping a close eye on the risks of the fast-changing crypto world.

During a G20 meeting in New Delhi, leaders from many countries agreed to create a clear set of rules for cryptocurrencies. To make digital money more transparent, they also agreed to share information between countries. 

A consensus declaration signed by G20 leaders read, “We call for the swift implementation of the Crypto-Asset Reporting Framework (CARF) and amendments to the CRS [Common Reporting Standard]. We ask the Global Forum on Transparency and Exchange of Information for Tax Purposes to identify an appropriate and coordinated timeline to commence exchanges by relevant jurisdictions.”

Right before the G20 Summit in New Delhi, the IMF and FSB published a paper about cryptocurrencies. They said that it’s important to have clear rules and regulations for cryptocurrencies to prevent risks to the economy and financial stability.

The Delhi Declaration read, “We endorse the Financial Stability Board’s (FSB’s) high-level recommendations for the regulation, supervision and oversight of crypto-assets activities and markets and of global stablecoin arrangements.”

Many governments have tightened regulations for cryptocurrency transactions. The European Union agreed new legislation to implement the Common Reporting Standard (CRS) in May. According to these laws, persons must mention the name of the person to whom they are sending cryptocurrency, their cryptocurrency address, and their account number. This is done to increase the transparency of bitcoin transactions for tax purposes.

The G20 finance ministers and central bank governors will continue discussing these issues at their fourth meeting in Marrakech, Morocco, during the World Bank and IMF annual meetings from October 9th to 15th, 2023.