U.S. Treasury Decides On A New Crypto Regulation To Take Effect In 2023

The Treasury Department has made it official that any cryptocurrency transfer worth $10,000 or more will be reported to the Internal Revenue Service. 

The step marks the first of many in the crackdown on cryptocurrency markets and transactions. The Treasury Department said that cryptocurrency already presents a significant detection issue by enabling criminal activity in broadest measure, including tax evasion.

U.S. Treasury’s Crypto Clampdown

Bitcoin has always struggled to marginalize official bodies. Janet Yellen, known for her crypto skepticism, and many others have continually discussed the role of Bitcoin as a medium for illegal activity.

To “minimize the incentives and ability to switch revenue from the new reporting regime, the treasury said that comprehensive reporting is expected. It acknowledged that cryptocurrency represents a small proportion of current transactions.

The Treasury statement added that, like cash transactions, companies receiving crypto assets would also be reported on with a fair market value of over $10,000.

It further observed, to give crypto holders preparation time, the ruling will take effect from 2023.

Wall Street analysts have been alarmed over the last months at the potential to be more involved in regulating cryptocurrencies by regulators of the Treasury and the Securities and Exchange Commission.

For the second consecutive day, Bitcoin fell by 5%, falling below $40,000. The asset plunged into the giant bloodbath of the crypto since March 2020 this week. The news caught Ethereum, Binance Coin, and Dogecoin trading down.

Tax Evasion Crackdown

As part of a more prominent announcement, the Treasury Department released efforts to tackle tax avoidance by the Biden administration and encourage more vigorous enforcement. Proposals include enhanced IRS funding and technologies and stricter sanctions for those who evade their obligations.

According to the Treasury’s figures, it estimated the disparity between the U.S. government owed taxes and paid taxes in 2019 at almost $600billion. 

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William K. 2 weeks ago Member's comment

Good News indeed, at least for honest folks.

John Hartley 2 weeks ago Member's comment

Why would they do this if crypto was going down the drain or they weren’t implementing it in the economy.... mmmmm.

Mark Walla 2 weeks ago Member's comment

Exactly. Now it’s pushed for 2023 but already created a huge fiasco.