Towards a Cryptocurrency Solidarity Levy

The Global Solidarity Levies Task Force (GSLTF) is a group established at COP28 in 2023, co-chaired by the governments of France, Kenya, and Barbados. Its main objective is to identify and build political support for new, innovative sources of financing for climate and development. These sources, referred to as “solidarity levies,” are designed as fair contributions from sectors or activities that generate significant externalities or have benefited disproportionately from globalization. Such levies are intended to be applied only where appropriate and necessary, with a focus on aligning costs with broader social and environmental responsibilities.

Crypto assets have been identified one of these sectors considered to be under-regulated, and with minimal to no contribution of the sector to the global commons. To address these issues, the Global Solidarity Levy Task Force set up an International Expert Commission on Crypto Asset Levies for Climate & Development (expert commission). The question which the GSLTF has set out to explore through this expert group is whether a levy imposed on the crypto ecosystem could be devised with the purpose of promoting climate, fiscal justice, and/or development.
The aim of the expert commission is to explore the complex issue of taxation of crypto assets and the prospects for international cooperation while meeting two priority objectives: (1) to enable governments to mobilize resources through the design of fiscal policies targeted towards the crypto asset sector, and (2) ensure that the fiscal measures disincentivize the most energy-intensive and climate-impacting crypto assets. The result of these deliberations will be converted into a set of recommendations to be endorsed by a coalition of countries.

The expert commission is composed of nine members acting in independent expert capacity. The members were selected to reflect equitable geographical distribution, representing views of the global north and the global south, spanning from academia, not-for-profit organizations, intergovernmental organizations, and business.