The G20 summit noted the need to regulate cryptocurrencies

The G20 summit ended with the signing of a final declaration, in which there was also a place for crypto-assets. The leaders of the countries came to a consensus on the prospects of digital technologies and the advisability of uniting for global regulation of cryptocurrency activities.

The G20 leaders agreed on full cooperation towards creating a cross-border cryptocurrency tax system and taking measures to reduce tax evasion in multinational corporations. This decision is enshrined in the declaration of the participating countries. 

In particular, paragraph 25 is devoted to the global financial system and the potential benefits of digital technologies in the financial sector, their implementation and mitigation of risks from innovation. The wording of the document gives the impression of a balanced approach to the crypto industry, and notes that innovative technological solutions can work for the benefit of the global economy. However, there is a caveat that other issues related to the use of digital currencies for tax evasion and money laundering will continue to be addressed and studied through the FATF program. 

Therefore, the next paragraph of the declaration is devoted to the creation of a global, modern international tax system.

It is argued that in the new economic conditions of erasing physical boundaries with digital technologies, some aspects of tax policy are losing relevance. Thus, according to the summit participants, the lack of the state’s right to impose taxes on foreign companies that do not have a physical representative office in the country provides an opportunity for tax evasion. 

The G20 member countries plan to independently develop solutions and discuss them in 2019 at the next summit in Japan. The final completion of the development of an international policy for regulation and taxation of the crypto industry is planned for 2020 at the G20 summit in Riyadh.