G20 summit comes to a consensus on crypto framework

The international group of twenty countries has long advocated for a crypto framework, which has finally become a reality after the recent G20 summit.

A few days back, the G20 had requested the International Monetary Fund (IMF) and the Financial Stability Board (FSB) for a crypto policy mechanism. The two organizations prepared a policy document which had included several crypto suggestions. Subsequently, a crypto framework was announced by the G20 on 9 September.

With the G20 summit finally coming to an end, a consensus has been reached on crypto. The document summarizing the summit’s decisions has described its crypto policy in detail.

“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,” said the document.

Moreover, it also endorsed the policy paper of the IMF and the FSB. The framework on crypto would require the sharing of crypto transactions across jurisdictions. 

Moreover, the document also had a section on central bank digital currencies (CBDCs). It noted the work by the Bank for International Settlements on CBDCs. It also welcomed a potential document on CBDCs from the IMF to continue discussions on the subject.

With crypto regulations being in different stages worldwide, a common consensus by the G20 could be a positive sign. The G20 represents a majority of the world’s population and economy. Its common crypto regulatory mechanism could boost the adoption and growth of crypto.

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