The administration of US President Joe Biden on Friday presented a draft version of the budget for 2022, several points of which affect the regulation of cryptocurrencies. The Ministry of Finance is proposed to be given additional powers to collect information about cryptocurrency transactions within the Tax Administration and other departments. Explanations are provided in the accompanying publication of the Ministry of Finance.
"Tax evasion when using crypto assets is a rapidly growing problem," the agency notes. – The global nature of crypto markets provides American taxpayers with opportunities to hide assets and taxable income through offshore crypto exchanges and wallet providers."
The Ministry of Finance proposes to expand the requirements for cryptocurrency brokers, including exchanges and custodial wallets, so that they transmit information about the beneficiaries of the accounts to the international information exchange network, of which the United States is a member. The measure is also aimed at identifying business owners – since this year, US law prohibits anonymous ownership of corporate entities. Crypto exchanges operating in the United States already have to store information about their customers, so the changes primarily affect the international exchange of information.
"The proposal will require brokers, including entities such as US crypto asset exchanges and wallet providers, to transmit information about certain passive entities and their significant foreign owners when transmitting information about crypto assets found in the brokerage accounts of such entities," the agency writes. If approved, the requirement is expected to apply to reports filed after December 31, 2022.
The Ministry of Finance also proposes to introduce "comprehensive reporting on financial accounts". "Separately, the reporting requirements will be applied in cases where taxpayers purchase crypto assets from one broker and then transfer them to another. Companies that receive crypto assets in transactions with a fair market value above $10,000 will have to report on them, " the document says.