Global leaders at the G20 summit, a collection of the 20 largest national economies in the world, are pushing for global cryptocurrency regulations that would give governments greater access to, as well as control over, cross-border transactions. The Crypto-Asset Reporting Framework (CARF) – first proposed by the Organization for Economic Cooperation and Development in 2022 – would grant greater power to state taxing authorities in order to reduce tax avoidance through the use of cryptocurrency.
The CARF would require an automatic and annual exchange of cryptocurrency transaction information between participating nations. President Joe Biden and other G20 leaders endorsed the intrusive CARF language; signing a statement saying: “We endorse the Financial Stability Board’s high-level recommendations for the regulation, supervision and oversight of crypto-assets activities and markets and of global stablecoin arrangements.”
Taking effect in 2027, the proposed regulatory framework would require crypto-exchanges to share an unprecedented level of information regarding transactions with governments around the world. That information would then be available to other participating governments, making the tracking of transactions and the identification of transactors much simpler for taxation purposes.
In response to the news that the G20 was advancing new regulations, the major non-stable coin cryptocurrencies opened with losses on Tuesday – including major players like Bitcoin and Ether. In Asian markets all of the top-10 non-stable coin cryptocurrencies also experienced loses. News that the bankrupt crypto-exchange FTX may receive court approval on September 13th to liquidate its remaining $3.4 billion in assets as added additional downward pressure on global cryptocurrency markets.
