The G20 meeting took place in Buenos Aires, Argentina recently, and this saw the G20 leaders call for the taxation of cryptocurrency. A final version of regulations for a document jointly delivered by G20 leaders called for “a taxation system for cross-border electronic services”. Is expected to be in place by 2020. This will be in line with Financial Action Task Force (FATF) standards.
Brent Jaciow, Head of Blockchain Affairs at music data tracking platform, Utopia Music, commented:
“This is a huge step in the right direction for the industry. Providing regulatory oversight and a framework for how to think about owning, investing, and the taxation of the asset class allows larger entities to seriously evaluate the space. Without the exact knowledge of the above, these entities would remain on the sidelines. Much like global capital markets, there is nothing large corporations fear more than uncertainty, especially as it relates to legal status and taxation.
The development of international standards to regulate new technologies, such as cryptocurrencies, is a necessary step for the cryptocurrency market to evolve. Without having regulatory oversight and a defined framework for taxation and reporting, there is no way larger entities will enter the space for fear of regulatory backlash. The potential hurdles caused by increased regulation are small in comparison to the benefits of mainstream adoption of distributed ledger technologies and cryptocurrencies.”
Robertas Višinskis, Founder of Mysterium Network, an open source, not-for-profit foundation focused on security and privacy, and the world’s first decentralised VPN blockchain project, commented:
“It is exciting to see that some of the most powerful countries in the world recognise not just the potential benefits of cryptocurrencies and new technologies, but also the importance of having international standards to regulate them.
This will be a challenge given the different ways some of the G20 member states have started to regulate crypto assets. China has tough regulation around cryptocurrencies, but welcomes investment in blockchain, whereas the UK is yet to release any laws or regulations surrounding cryptocurrencies. However, overall, the G20 calling for the taxation of cryptocurrency is an important step in the widespread adoption of cryptocurrencies, and will continue to help the evolution of the market. Regulation will help to filter out bad players in the market, and build trust in blockchain and cryptocurrency projects.”
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