The Biden administration is reportedly looking to crackdown on tax evasion due to the oversight in crypto. And also pointed to cryptocurrency as a big area of concern. The administration is analyzing potential gaps that may be used to finance illicit activities.
The U.S. Treasury last week announced changes to cryptocurrency reporting. The changes would require Crypto exchanges and businesses to report any cryptocurrency transactions over the value of $10,000 or more to the IRS, making it similar to cash deposits. Cash deposits currently require the banks to report transactions over $10,000 to IRS.
The report also said that "cryptocurrency poses a significant detection problem by facilitating illegal activity broadly including tax evasion.”
Experts suggest that this latest regulation move by the government won't be the last. This is due to the fact that cryptocurrency transactions are likely to rise in importance in the coming years.
Whether or not this proposal passes, it is better to keep accurate, up-to-date records of any crypto transactions or transfers. Because it is clear, as the importance of crypto increases the Government would definitely want to keep track of the money in crypto.
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