Increased international cooperation on the matter of cryptocurrency regulations is a much-anticipated milestone for increased predictability and adoption. Although progress has initially been slow, it is now looking as if the G20 countries might issue joint guidelines.
G20 countries discussed the issue at the Buenos Aires summit
This news comes from the Japanese news outlet Jiji [reposted in El Periodico], which writes that the G20 countries have discussed the matter at the recent G20 summit in Buenos Aires, Argentina.
The G20 leaders have reportedly delivered a document highlighting the need for such cryptocurrency tax regulations. This has previously been a somewhat murky regulatory area, where rules can differ significantly between countries.
Moreover, the document in question is said to call for a ”taxation system for cross-border electronic payment services.” This description would include cryptocurrencies, and could potentially remedy some of various governments’ unclear cryptocurrency taxation stances.
The article, which is written from a Japanese perspective, noted that current laws prohibit foreign companies without a base in Japan from being taxed by the government.
However, this is far from the first time that the difficulty in taxing cross-border cryptocurrency transactions has arisen. Specifically, France’s finance minister, Bruno Le Maire, called on the G20 countries in July to discuss the issue.
Furthermore, Le Maire proposed that the G20 countries should discuss Bitcoin as a whole. At the time, he said that there is ”evidently risk of speculation” in regard to the cryptocurrency market.
International cryptocurrency taxation guidelines have been much-requested
In addition, Le Maire also noted that France would need to examine how to regulate Bitcoin with other G20 members. Nevertheless, calls for increased international cooperation, to promote clarity, have been nearly unanimous.
For example, Jeremy Allaire, CEO of the investment application Circle, has specifically called for ”[cryptocurrency] normalization at the G20 level.”
Moreover, increased cryptocurrency regulation is widely seen by governments as something that could prevent money laundering and corruption. If the net result of this is more transparent and coherent cryptocurrency regulations, it will surely be welcomed.
However, this supposes that the regulations in question are drafted in a cryptocurrency-friendly or neutral manner.
The G20 countries are reportedly working on the system at the moment, and will ”consider the issue during 2019 when Japan will be the president of the summit.”
A final version of the proposal, which will take suggestions from the 20 member states, is reportedly expected to be in place by 2020.
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Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the blockchain industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.