Is An International Crypto Tax Standard On The Way? It Looks That Way.

Illustration of a group of people to accompany a blog post about international crypto discussions at the G20 summit in 2018The majority of media outlets focused on the “palace intrigue” of this year’s G20 in Argentina. However, the cryptocurrency press narrowed in on the group’s digital currency declaration.

Will There Soon Be An International Cryptocurrency Tax Framework?

In large part, the world’s leaders welcome the economic possibilities presented by blockchain and crypto. But they’re also concerned about money laundering, finance terrorism, and tax collection.

Participants At This Year’s G20 Released A Statement That Included Crypto Talk

G20 participant released a statement that included some crypto talk. Below are the highlights of which Bitcoin, Ether, and altcoin holders should be aware.

“We will continue to work together to seek a consensus-based solution to address the impacts of the digitalization of the economy on the international tax system with an update in 2019 and a final report by 2020.” (https://cryptonews.com/news/g20-reportedly-agrees-on-int-l-crypto-tax-plan-3010.htm)

“[The G20 looks] forward to continued progress on achieving resilient non-bank financial intermediation. We will step up efforts to ensure that the potential benefits of technology in the financial sector can be realized while risks are mitigated. We will regulate crypto-assets for anti-money laundering and countering the financing of terrorism in line with FATF standards, and we will consider other responses as needed.” (https://cryptonews.com/news/g20-reportedly-agrees-on-int-l-crypto-tax-plan-3010.htm)

“[G20 signatories] will continue to monitor and, if necessary, tackle emerging risks and vulnerabilities in the financial system; and, through continued regulatory and supervisory cooperation, address fragmentation.” (https://inc42.com/buzz/g20-countries-agree-to-regulate-crypto-assets-in-line-with-fatf-recommendations/)

“We will regulate crypto-assets for anti-money laundering and countering the financing of terrorism in line with FATF standards, and we will consider other responses as needed.” (https://bitcoinexchangeguide.com/g20-summit-shares-decision-on-new-cryptocurrency-tax-regulations/)

Japan Is Leading The International Crypto Tax Charge

Japan is especially eager to collect crypto tax dollars, and the island nation is next year’s G20 host — a position which confers some authority over agenda items. In other words: Expect international crypto tax standards to be at the top of the list at the 2019 summit.

Is An International Crypto Tax Standard Wise?

Yes, regulations can hamper a burgeoning industry. However, when it comes to crypto, growth is dependent on widespread acceptance. And widespread acceptance requires some amount of oversight for stabilization’s sake. Many decentralization-libertarian purists disagree. However, nearly every economist in the world has warned that sustainable crypto growth requires “international coordination.”

Now, international standards don’t necessarily translate into burdensome regulations. The keys to crypto regulatory success are clear guidelines and limited scope.

Connect With A Crypto Tax Attorney

The Gordon Law Group is a leading crypto tax firm. We work with businesses and investors to make sure they’re best positioned to profit.

Let’s talk about your situation and how we can help.

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