By
Mayowa Adebajo
April 11th, 2023
G20 nations have agreed on a common reporting standard that will ensure financial stability in their economies.
Between July 15 and 16, a G20 Ministerial Symposium on Tax and Development took place in Bali, Indonesia. The meeting had in attendance, central bank governors, finance ministers, and other top government officials and representatives from across the G20 nations. However, the meeting mostly bordered on how best to regulate the crypto market. And in addition, cited the need for synergy and cooperation among the nations.
G20 Nations to Focus on Maintaining Global Financial Stability
Without a doubt, the present geopolitical climate is one that raises serious concerns. Global rates of inflation is at its highest, and there’s also the energy crisis and supply chain shortage among many other things.
However, in all of these, the G20 nations are more focused on cross-border cooperation among members, especially regarding crypto. The belief is that this kind of collaborative work will ultimately ease most of the concerns previously highlighted. And so, the group has a Common Reporting Standard (CRS) underway. Interestingly, over 100 countries have already adopted the CRS. Part of the public statement from the meeting reads:
“All parties support strengthening coordination in the implementation of relevant international standards, focusing on preventing cross-border spills and maintaining global financial stability.”
Finance Minister of India Calls for Automated Information Sharing
Meanwhile, India’s finance minister Nirmala Sitharaman raised another opinion during the G20 meeting. She shares her reservation about the CRS not being enough when it comes to tax. In her explanation, tax evaders are smart enough to explore other ways to move their wealth all while the crypto asset reporting is still underway. She said in part:
“I call upon the G20 to examine the feasibility of an Automatic Exchange of Information in respect of other non-financial assets beyond those covered under the CRS…”
There is no gainsaying in the fact that crypto has now gone mainstream. While governments like El Salvador are infusing it into their economy, major institutions are also getting increasingly involved. So, it is this fast crypto adoption rate that necessitates that lawmakers and regulators act quickly.
