Sustained political buzz has been rampant lately when it comes to crypto, and today it is no exception. In an initial report from Bloomberg this morning, the U.S. Treasury Department shared its intention to require companies and likely individuals transferring crypto over $ 10,000 and more to report transactions to the IRS. The move is part of a broader plan by the Biden government to strengthen tax compliance.
The Treasury Talk
The information comes from a financial report entitled “The American Families Plan Tax Compliance Agenda”. “As with cash transactions, companies would also be reported receiving crypto assets with a fair market value of more than USD 10,000. Although cryptocurrency makes up a small fraction of current business transactions, such extensive reporting is required to minimize the incentives and opportunities to get revenue out of the new information reporting system, ”the report said.
Interestingly, the report cited both cash and crypto as viable shields for tax reporting. The report even describes in detail that crypto represents a “significant identification problem by facilitating illegal activities by and large, including tax evasion”. The report also acknowledges that crypto transactions “are likely to grow in importance over the next decade”.
The report is likely linked to the IRS Form 8300 which requires individuals, corporations, corporations, partnerships, trusts, estates, and the like to report cash payments in excess of $ 10,000.
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Continued investment in broader crypto has the federal government paying attention | Source: CRYPTOCAP - TOTAL on TradingView.com
Vortex of federal chatter
The US government has received increasing numbers of public comments. The Treasury Department’s comment seems a little contradicting itself. Today’s report comes after two US Federal Reserve policy makers stated earlier this week that cryptocurrency does not have “access to the economy with systemic effects” for the Fed. James Bullard, President of the US Federal Reserve in St. Louis, and Raphael Bostic, President of the US Federal Reserve in Atlanta, both noted that crypto volatility is a well-known characteristic ”.
The USA is not alone in the public debate either. The Norwegian central bank has raised concerns that crypto volatility may be a concern to their banking system, and of course China’s potential rigid stance on crypto, which is particularly focused on mining, has always been a talking point in space.
Of course, the institutions around the world have also represented different views. Wells Fargo, along with other major U.S. institutions, has warmed to crypto investing. However, the Bank of Canada recently discovered that the volatility of cryptocurrency assets is an emerging security flaw for the country’s financial system.
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