The Treasury Department wants cryptocurrency transfers of $10,000 or more to be disclosed to the Internal Revenue Service.
The US Treasury is proposing severe regulations on cryptocurrencies, citing the possibility of tax evasion.
The Treasury Department of the United States is targeting cryptocurrencies.
The government agency stated in a report on tax-enforcement suggestions released on Thursday that bitcoin transactions of $10,000 or more should be notified to the Inland Revenue Service. According to the Treasury’s report, there are tax evasion concerns related with digital assets.
Since its beginnings, Bitcoin has struggled to overcome its poor image among government officials. Janet Yellen, noted for her skepticism about cryptocurrency, and others have regularly questioned Bitcoin’s function as a platform for criminal activities.
According to the Treasury, “as with cash transactions, firms that receive crypto assets with a fair market worth of more than $10,000 will be reported on.”
It further stated that the rule will go into force in 2023 to provide crypto holders enough time to prepare.
Bitcoin fell 5% on the news, falling below $40,000 for the second day in a row. The asset plummeted yesterday in the worst crypto slaughter since March 2020. Ethereum, Binance Coin, and Dogecoin are all trading down as a result of the news.