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India urges G20 to bring crypto into global framework for “automatic exchange of information” – regulation Bitcoin news
India’s Finance Minister has called on the G20 countries to bring crypto within the framework of “Automatic exchange of information”. More than 100 countries have adopted the Common Reporting Standard under the framework.
G20 urged to bring crypto during automatic exchange of information
India’s Finance Minister, Nirmala Sitharaman, spoke on cryptocurrency on Friday during the G20 Ministerial Symposium on Tax and Development in Bali, Indonesia.
She noted that “tax transparency” is an area where “significant progress has been made in the automatic exchange of information regarding financial accounts”, she described: “Our research has shown that many layers of entities are often set up by tax evaders to hide their unaccounted for assets. “
Sitharaman added that while the framework for the automatic exchange of information provides financial account information to various jurisdictions, smart tax evaders are exploring other ways to move their unrecognized assets through investing in non-financial assets. The Minister of Finance emphasized that this area is a point of action for the G20:
While the development of the crypto-asset reporting framework is underway, I ask the G20 to examine the possibility of an automatic exchange of information with respect to non-financial assets other than those covered by CRS as real estate.
The Automatic Exchange of Information (AEOI) aims to reduce global tax evasion. The Common Reporting Standard (CRS) is an information standard for AEOI. It was developed in response to a G20 request and approved by the Organization for Economic Co-operation and Development (OECD) in July 2014.
CRS encourages jurisdictions to obtain information from their financial institutions and automatically exchange this information with other jurisdictions on an annual basis, the OECD described.
100+ countries have committed to CRS
The Indian finance minister continued: “Over 100 countries have committed to exchanging financial account information under Common Reporting Standards.”
However, she pointed out that some jurisdictions have not yet started exchanging information under this framework. They “must be brought in … There is a work agenda for the G20,” Sitharaman stressed. She meant:
I believe it is for the G20 to play the role of a catalyst to encourage these jurisdictions to become part of the automatic exchange of information and this mechanism because it can strengthen global efforts against offshore tax evasion and avoidance.
Do you think crypto should be included in the framework for automatic exchange of information? Let us know in the comments section below.
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