December 03, 2018 | AtoZ Markets - The reports from the recently-started G20 summit say that the leaders have called for taxing cryptocurrency, as well as regulating them, of which anti-money laundering claims come on top.
AtoZ Market learned that the G20 summit leaders concluded last week in Buenos Aires, that there is a need for “a taxation system for cross-border electronic payment services.”, as the final paper they presented reads.
According to the paper, the leaders agree that under the currently followed laws, foreign firms which have no affiliates in Japan, cannot be taxed by the authorities in the country. Hence, considering regulations for cross-border electronic services is urgently needed.
However, while the leaders are said to be working on regulating the digital currencies, they also reached to considering the issue referred to in the 2019 round of the G20 summit, of which Japan will be the president.
Based on the proposals that the member states will provide, the final version of the cryptocurrency regulations will be finalised by 2020, as per news repots.
Cryptos should not be a loop for evading tax payments
As official regulators explain, regulating the cryptocurrency is needed as digital currencies can be a safe exit for those who want to evade paying taxes, which will reflect in negative impact on the economy on a global scale.
Regulating digital assets has always been controversial in general, and as the matter keeps showing the necessity of taking it seriously, the outcome of financial regulators’ meetings has not yet brought any fruits in that regard on the practical side.
Massive markets for cryptocurrency in Europe and the Americas were inconsistent in their views in a matter of fact, while the fear in the tones the regulators from the markets referred to showed, reflected clear lack of readiness for adopting such a system, while on another hand, some individual initiatives were brave for widening the margin for cryptos , like the one the state of Arizona reportedly took, when it was said to have considered accepting tax payments in cryptocurrencies, while in return, Switzerland was unexpectedly not open for them.