G20 Sign Agreement For International Cryptocurrency Tax

A G20 conference is when 20 leaders from the most powerful countries in the world decide to meet to discuss global issues and come up with solutions that look to benefit their respective countries and the rest of the world. These G20 conferences usually face a lot of opposition and protests whenever they are held due to the controversial issues and decisions that the leaders have to face and make.

The G20 conference which is currently taking place in Buenos Aires, Argentina saw these top global leaders sign-off on an interesting document. These G20 leaders decided to move forward with plans on imposing an international crypto tax and also working on a global cryptocurrency.

Countries usually do not charge a foreign company taxes when they do not have a physical presence in their respective country. However, governments across the world have noted that cross-border transactions are taking place using cryptocurrencies and they are losing out on a lot of funds due to no taxes being imposed.

This new agreement will commission a major IT company who will take on the responsibility of coming up with a solution on how to executive this international cryptocurrency tax. The IT Company as of now is yet to be named. The agreement also addresses concerns over money laundering activities that are allegedly taking place using cryptocurrencies.

Discussions regarding these cryptocurrency solutions will continue during the next G20 conference which will take place in Japan. These powerful leaders expect a final solution to be rolled out before the end of 2020.

G20 Concerned Over Global Cryptocurrency Industry

G20 leaders have been concerned about the growth and popularity of the cryptocurrency industry and have termed cryptocurrencies as a significant threat to the health of the global economy. The G20’s Financial Stability Board stated in October that it considered regulating cryptocurrencies a negative decision as it would undermine the authority of financial institutions and the central bank in countries that do so.

G20 leaders are looking to bring the global cryptocurrency industry under tighter controls with this new agreement. While G20 leaders have signed-off on this agreement, there are reports that the United States and China had major concerns over the proposal to impose a global cryptocurrency tax while the European Union (EU) and the UK were in favour of this move.