Leaders of the G20 nations have called for international crypto regulations and taxation for fighting money laundering. The economic leaders have jointly agreed to show their enthusiasm towards collaborating and looking for the right solution.
Crypto Market- The Greatest IT Company
As per publications on jiji.com, the leaders are bent on developing a cryptocurrency taxation system. They consider the market for cryptocurrency the most significant IT Company which means that the proposed taxation system will help the countries in taxing crypto-based cross-border payments.
The decision came during a G20 Summit attended by the leaders of the 20 economies in the Buenos Aires region of Argentina. The IMF or International Monetary Fund has repeatedly raised the problem of creating universal cooperation for dealing with the fast-emerging Fintech market. It is being envisaged that the global leaders are on the same line.
If the proposal is approved, then it will serve as one of the most significant steps forward. This is mainly because, as per law, the government, at present, does not have any legal support for taxing the international companies that do not have a local physical presence. As per jiji.com, there is good evidence showcasing how the companies use this significant gap for circumventing and avoiding the payment of taxes. The joint declaration of the leaders stated:
“We are looking forward to getting solutions for the foreign taxation problem about the digitisation of the entire economy, and we shall continue to work in coordination.”
The Main Focus
Leaders from the G20 countries have also promised to come up with a cross-border digital currency system that shall bring forward the right measure for preventing multinational organisations from avoiding taxes. The details of this system is acknowledged during the G20 chapter of 2019 organised in Osaka, Japan. The leaders are expecting that the final draft of the taxation system will be considered from all the members by the year 2020.