The G20's International Crypto Framework

The G20 just agreed to a new international set of rules for crypto.

The G20 is a group of 19 nations, the European Union, and the African Union, comprising 2/3 the world's population and 80% of the global economic output. The most recent annual meeting was held from September 9th to 10th in New Delhi, India. Among the many aspects of global trade and finance discussed was the Crypto-Asset Reporting Framework or CARF.

CARF was originally proposed by the Organisation for Economic Cooperation and Development (OECD), and its purpose is to essentially bring digital assets under the purview of the Common Reporting Standard (CRS). The CRS is meant to prevent tax evasion and other financial crimes by requiring financial institutions in participating countries to share relevant information with other participating countries.

Is this a good or bad thing? On one hand, it means they are not trying to stop crypto, merely control the potential negative aspects of it. If crypto is going to go mainstream, there needs to be rules to help control money laundering, tax evasion, etc. On the other hand, the CRS is pretty extensive. It requires financial institutions to provide a lot of information. CARF is equally extensive, thus eroding the anonymity that crypto is supposed to provide and creating a substantial burden for individuals and crypto-related entities.

You can read the full report here (https://www.oecd.org/tax/exchange-of-tax-information/crypto-asset-reporting-framework-and-amendments-to-the-common-reporting-standard.pdf)