G20 leaders call for crypto taxation

According to news reports, G20 countries have called for the regulation of cryptographic assets to combat money laundering and corruption. The final draft that will be provided by G20 leaders calls for “a taxation system for cross-border electronic payment services.”

The report took cognisance of the current laws in Japan where a foreign company can only be taxed only if it holds an office within its territory. This allows companies to manipulate accounts and evade taxes within Japan. The G20 leaders are trying to build a cross-border taxation system to curb such malpractices.

Argentina has already started working on the system and Japan is also expected to consider the issue soon. A final taxation document is expected to be ready by 2020.

Many G20 countries such as India, Russia and China may open the doors to crypto trading if these countries can think of a way to regulate cryptocurrencies in an international market. Incidentally, at a G20 summit held earlier this year, Bank of England governor Mike Carney had said that cryptocurrencies do not pose any risk to the world’s economy. Will we see more favourable crypto regulations across the globe soon?