The US Treasury Department has announced a new proposal from the Joe Biden administration to strengthen measures to combat tax evasion in the cryptocurrency sector, Bloomberg reports. It is assumed that information about crypto transactions over $10,000 will be transferred to the tax administration of the country.
"Cryptocurrencies already pose serious challenges from the point of view of detection and are used for conducting illegal activities, including tax evasion. As with traditional currency transactions, businesses receiving crypto assets with a fair market value above $10,000 will also be required to report them, " the Justice Department announced in a report on planned tax enforcement measures.
According to the agency, the proposal is aimed at " minimizing the incentives and opportunities for moving revenue outside the new information transfer regime." At the same time, the ministry noted that cryptocurrencies make up only a small part of the total volume of transactions that pass through registered legal entities. "The role of cryptocurrency transactions is expected to increase over the next decade, especially in light of the large – scale financial account reporting regime," the document says.
The new requirements are due to take effect in 2023. This time is given to financial institutions to prepare for the upcoming changes.
"The Tax Office will be able to use the new information to better conduct law enforcement, strengthen control over wealthy defaulters and reduce the likelihood that fully law-abiding taxpayers will be subjected to expensive audits," the Ministry of Finance writes.
Against the background of today's announcement, bitcoin quickly fell by 9% and was again below $39,000.