OECD Presents Proposal on Global Crypto Transparency to G20

• OECD has proposed a bill for transparency on virtual assets to G20 countries.
• Virtual assets are not covered under Common Reporting Standards (CRS).
• G20 is a global group of 19 nations and the EU.

Another Attempt on Regulating Crypto

Virtual asset regulation remains the talk of the town among governments of the world. Where some countries go completely grim on them, some are here to adopt them as a legal tender of the nation. But still, major concern remains the unregulated structure of the cryptosphere. Recently, the Organization of Economic Co-operation and Development (OECD) presented a regulatory framework dubbed Crypto Asset Reporting Framework (CARF) to the G20 countries.

The 100-page report is centered around transparency on crypto regulations globally. Released document highlights that digital assets do not require any intermediary like a bank or any other central entity to execute transactions. But it has given rise to other go-betweens in space like crypto exchanges and virtual wallets, all unregulated.

Currently, digital assets are not covered under the CRS. Till now, these standards have proved themselves as robust war machines against international tax evasions. CARF is anticipated to serve similarly against any illicit use of these assets.The OECD has offered a set of amendments to the G20 nations in case there emerges any need to make changes in certain areas of interest.

Crypto winter has struck virtual assets like Bifrost coming down on the Black Order upon Thor’s arrival. Bloomberg reported that this year saw over 12,000 coins going zombie. Means neither they are dead nor they are witnessing any trade. This number has tripled in contrast to 2021 when the sector experienced 3.7K zombie coins in the market.

State of Cryptocurrencies Across The Globe

According to the World Economic Forum (WEF), there is currently no global coordinated regulation on digital assets. But regulators of the world are trying really hard to develop a structure to control them. The Securities and Exchange Commission (SEC) remains the greatest opposer to crypto. It addressed the sector as the “Wild West.”

If the crypto sector was a movie, it would be a film with mixed reviews where some are loving the concept while others are busy hating it. China’s crackdown on digital assets became one of the most highlighted news in 2021. Beijing, the sprawling capital of China, announced the ban on virtual assets trading and mining in September 2021.

In the same month, Nayib Bukele, President of El Salvador, announced that they are adopting Bitcoin as the nation’s legal tender on 7th September 2021. He presented a “Bitcoin Law” to Congress in June 2021. Mexico too is working hard to make the crowned asset legit currency of the nation. The Mexican Senate presented a bill in July 2022 to make BTC a legal tender but the Central bank rejected it.

Cryptocurrencies are perceived as a tool to evade certain regulations by many. During the Russia-Ukraine war, international authorities believed that the attacking nation might use digital assets to evade global sanctions from other countries.