Leaders of the world’s 20 largest economies, known as the G20, met in New Delhi this past weekend on 9 and 10 September for a summit under the theme “one earth, one family, one future.”

During the summit, leaders signed a consensus declaration urging the implementation of a Crypto-Asset Reporting Framework (CARF) and amendments to the Common Reporting Standard (CRS). The changes are set to have a significant impact on crypto users around the world. 

Under this new framework countries will exchange information on crypto transactions between jurisdictions annually, covering everything from unregulated crypto exchanges to wallet providers. This will give tax authorities better visibility into crypto coins like Bitcoin and Ethereum and the people behind the transactions. 

The CARF, which was first introduced by the Organisation for Economic Cooperation and Development (OECD) in October 2022, is designed to give tax authorities more transparency into crypto transactions. 

“We call for the swift implementation of the Crypto-Asset Reporting Framework and amendments to the CRS,” read a declaration signed by G20 leaders.

“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.”

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The new crypto framework will impact nearly 60% of the world’s population which make up the G20, including countries like the UK, US, Canada, China, France, India, Russia, and more. 

Many countries in the G20 already have frameworks in place to align with the CARF. Notably, the UK instituted a new ‘travel rule’ which requires virtual asset providers operating in the UK to collect, verify and share information regarding transfers made on their platforms. 

While these new frameworks are in place to lessen tax evasion and money laundering, industry pundits point out that because not all jurisdictions have passed appropriate legislation, and even less enforce it, measures are less effective than they should be. 

Ahead of the Summit, India’s finance minister, Nirmala Sitharaman, pointed out that it would be difficult to regulate crypto without cooperation between all countries. 

“India’s [G20] presidency has put on the table key issues related to regulating or understanding that there should be a framework for handling issues related to crypto assets,” Sitharaman said in an event in Mumbai ahead of the G20 Summit.