The document, still in its early phase, describes the need for taxation as “a way to secure cross-border electronic payments.”
The G20 member countries, which gathered in Buenos Aires, Argentina last weekend, are in the early stages of the framework project and will continue the discussions and development in 2019 when Japan is hosting the G20 gathering. The final rendition of the paper would be accepted no sooner than 2020 after all members have submitted their proposals and comments on the topic.
In October, Circle’s CEO Jeremy Allaire had called for “cryptocurrency industry regulations at G20 level”. Allaire focused on Initial Coin Offerings (ICOs) and the way regulators treat them: “When we talk about token offerings, is there enough clarity about their nature? Which token offerings are securities, and which can be considered utility?”
Allaire also commented on the global money-laundering watchdog Financial Action Task Force (FATF) declaration, stating that The France-based FATF's turn is a "decent start," but emphasizing additional measures against ICOs and the market manipulations that some ICOs made in the past.
Circle's CEO also pointed out other issues concerning the crypto industry, such as coordinated efforts against cryptocurrency market manipulations and universal Know-your-customer (KYC) algorithms, which he believes should come from a G20 level.
In July, G20 finance ministers and national bank directors affirmed that the crypto business would stay working without a strict regulatory framework. The members chose to push the due date for creating specific crypto regulations further in time, following a four-month consultation period.