Breaking: G20 Discusses International Cryptocurrency Tax
- It is currently illegal for a government to tax a foreign company which does not have a physical presence there.
The G20 conference, which is happening at this moment in Buenos Aires, has produced a decision which will be interesting to the cryptocurrency world.
The attendant politicians have signed a document which indicates their intention to begin working on a solution to the issue of cryptocurrency tax, and that they will collaborate to this end.
Taxman
The leaders' declaration mentions the construction of an international system which will tax cross-border Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times. One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times. Read this Term. This is important because it is not legal for a government to tax a foreign company which does not have a physical presence on that government's territory, but there is evidence that this rule is being used to avoid tax, a tactic made possible by cryptocurrency, according to jiji.com, a Japanese news source.
The agreement also mentions money-laundering as executed with cryptocurrency as an area of interest for the politicians.
The declaration declares that all G20 countries are to work on some proposals and discuss them further when they meet next year in Japan. Reportedly, they intend to have a final version by the year 2020.
A number of countries - France and Japan for example - have been calling for this discussion for a while.
In October, the G20's advisory board reported that cryptocurrency is a developing threat the world's economic stability. The Financial Stability Board, as it is called, considers the institutionalisation of cryptocurrency to be a negative development because it could erode confidence in and the authority of financial institutions.
About the G20
The G20 is a club where leaders of the 20 most powerful countries in the world meet to discuss pressing issues and have their photographs taken. The current president of the organisation is Mauricio Macri, President of Argentina. Next year the position will be taken by Shinzō Abe of Japan.
These conferences are often met with protests, as people vent their frustration at their countries' figureheads; last year in Hamburg, protesters blocked roads and set cars alight. Argentina has assigned 22,000 police officers and 700 security guards to protect the conference and has cordoned off a 12-kilometre radius around the venue.
The G20 conference, which is happening at this moment in Buenos Aires, has produced a decision which will be interesting to the cryptocurrency world.
The attendant politicians have signed a document which indicates their intention to begin working on a solution to the issue of cryptocurrency tax, and that they will collaborate to this end.
Taxman
The leaders' declaration mentions the construction of an international system which will tax cross-border Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times. One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times. Read this Term. This is important because it is not legal for a government to tax a foreign company which does not have a physical presence on that government's territory, but there is evidence that this rule is being used to avoid tax, a tactic made possible by cryptocurrency, according to jiji.com, a Japanese news source.
The agreement also mentions money-laundering as executed with cryptocurrency as an area of interest for the politicians.
The declaration declares that all G20 countries are to work on some proposals and discuss them further when they meet next year in Japan. Reportedly, they intend to have a final version by the year 2020.
A number of countries - France and Japan for example - have been calling for this discussion for a while.
In October, the G20's advisory board reported that cryptocurrency is a developing threat the world's economic stability. The Financial Stability Board, as it is called, considers the institutionalisation of cryptocurrency to be a negative development because it could erode confidence in and the authority of financial institutions.
About the G20
The G20 is a club where leaders of the 20 most powerful countries in the world meet to discuss pressing issues and have their photographs taken. The current president of the organisation is Mauricio Macri, President of Argentina. Next year the position will be taken by Shinzō Abe of Japan.
These conferences are often met with protests, as people vent their frustration at their countries' figureheads; last year in Hamburg, protesters blocked roads and set cars alight. Argentina has assigned 22,000 police officers and 700 security guards to protect the conference and has cordoned off a 12-kilometre radius around the venue.