The G20 is considering the framework for crypto regulation this week

The Organization for Economic Co-operation and Development (OECD) on Monday submitted a framework to increase international transparency in crypto to the G20.

Twenty participating member states make up the G20, including China, India, South Korea, Brazil, the United States, the United Kingdom, and the European Union, to name a few. Back in April 2021, the G20 tasked the OECD with developing a method for automation cryptocurrency tax reporting between nations.

G20 finance ministers and central bank governors will review the 100-page Crypto-Asset Reporting Framework (CARF) – along with proposed changes to the group’s Common Reporting Standard (CRS) – at their next meeting, which will take place this Wednesday and Thursday in Washington, DC

The OECD first adopted CARF in August, a report the group calls a “transparency initiative” for crypto. Among other things, it defines which “encryption means” and NFTs are, offers a plan for automatic international crypto tax reporting, and includes provisions for trading in cryptocurrency derivatives.

According to a statementthe OECD said that cryptocurrencies are currently not covered by the CRS, which was designed to prevent international tax evasion.

The OECD argued that because cryptos are not covered by the current standard, there is a “likelihood of their use for tax evasion while at the same time undermining the progress made in tax transparency through the adoption of the CRS.”

The OECD’s proposed changes to the CRS also include the addition and definition of the central bank’s digital currencies (CBDCs).

Although the framework is likely to affect many countries, the United States may be an exception. In a blog post, Coinbase stated that it believes CARF and CRS will be applied to all nations except the US because the US will create its own crypto tax rules from the Infrastructure Investment and Jobs Act.

Taken together, the proposed framework and amended standards could mean the beginning of the end of the Wild West of cryptocurrency and the varied patchwork of international regulations.

World leaders recognize that crypto is a trillion-dollar industry and that some illicit traders may abuse crypto’s permissionless and sometimes pseudonymous nature to avoid sanctionstaxes or engage in other illegal activity.

These and subsequent moves by the OECD and the G20 could make life a little more difficult for jet-setting crypto moguls like Terras Do Kwon-who is now at Interpol’s red reference list– or Michael Saylor, who is now is sued by the US Attorney General for alleged tax fraud.

Editor’s note: this article was updated to include comments from Coinbase.