G20 countries have shown their plan to start acting on a solution to the matter of cryptocurrency taxation and regulation. The countries have agreed to regulate cryptocurrencies in the ongoing G20 conference, which is taking place in Buenos Aires, a resolution which will be interesting to the cryptocurrency world.
The joint declaration was signed by all G20 countries on Saturday. They admitted that the modern multilateral trading regularity is falling short of its objectives and established fundamental reform of the World Trade Organization.
As reported by The Saudi Gazette, the document signed by the G20 countries confirms that significant improvement is needed for the digitalization of the global economy. According to the document, G20 has allowed a governing strategy in line with FATF standards. Section 25 of the official declaration states:
We look forward to continued progress on achieving resilient non-bank financial intermediation. We will step up efforts to ensure that the potential benefits of technology in the financial sector can be realized while risks are mitigated. We will regulate crypto-assets for anti-money laundering and countering the financing of terrorism in line with FATF standards and we will consider other responses as needed.
The G20 countries are also thinking about a clear and flexible monetary policy, indoctrinated in accepted global standards. It is important to encourage sustainable growth. The G20 countries also stated that they remain dedicated to the complete, up-to-date and uniform implementation and finalization of the accepted financial reformation program, and the evaluation of its consequences.
The countries will also proceed to control and, if needed, tackle rising uncertainties and vulnerabilities in the economic system; and, through continued regulatory and supervisory cooperation, address fragmentation.
The document further elaborated that the countries will work for a globally balanced, sustainable, and current worldwide tax system. They will also work on the transfer pricing laws, and appreciated worldwide collaboration to develop pro-growth tax strategies. In this, global implementation of the OECD/G20 Base Erosion and Profit Shifting package persists vital. They will also work to explore a consensus-based solution to discuss the consequences of the digitalization of the economy on the international tax system with an update in 2019 and a final report by 2020.
The G20 counties also welcomed the initiation of the spontaneous exchange of commercial account data and support the established standards generated by the OECD to classify domains that have not convincingly executed the tax clarity rules. Preventive actions will be counted against listed domains. All powers should approve and endorse the multilateral Convention on Mutual Administrative Assistance in Tax Matters.
About G20 Countries
The G20 is a global gathering for the governments and central bank directors from Argentina, Australia, Brazil, Canada, China, the European Union, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom, and the United States. The current president of the group is Mauricio Macri, President of Argentina.
The G20 commenced in 1999 as a conference of Finance Ministers and Central Bank Governors in the outcome of the Asian financial crisis. In the year 2008, the initial G20 Leaders’ Summit was held, and the group performed a pivotal role in reacting to the global economic disaster. Its absolute and coordinated efforts increased customer and market trust and established the initial steps of economic recovery. G20 leaders have met nine times since 2008.
The G20 countries are not the only countries who are thinking about cryptocurrency regulations. In the month of October 2018, the government of Ukraine had started a state policy to legalize cryptocurrencies and precisely manage and monitor the fintech area as a wheel of a new public policy produced by the Ministry of Economic Development and Trade. The process may take up to three years to achieve but ultimately, businesses built around digital assets would become a legal part of the country’s market.
The new regulatory policy will be executed in two steps. The constitutional standing of cryptocurrencies, exchanging platforms and other objects administering with digital assets must be defined in 2018 and 2019. After this, the government of Ukraine will examine the business to recognize trends and notable concerns in order to put forth satisfactory schemes to regulate the entire sector.