In an effort to deliver on its promise to intervene in the cryptocurrency market, US Treasury Secretary Janet Yellen has just revealed a new set of regulations that aim to crack down on crypto transactions due to alleged illicit activity and tax evasion.
On Thursday, the Treasury Department said it would take further steps to regulate cryptocurrency markets and related transactions, by requiring any transfers worth over $10,000 to be reported to the Internal Revenue Service. The announcement is part of the Biden administration’s broader efforts to address tax evasion and advocate for better compliance.
“Within the context of the new financial account reporting regime, cryptocurrencies and cryptoasset exchange accounts and payment service accounts that accept cryptocurrencies would be covered. Further, as with cash transactions, businesses that receive cryptoassets with a fair market value of more than $10,000 would also be reported on,” the Treasury Department said in a news release.
Following the announcement, bitcoin slumped slightly before reversing course.
Information for this briefing was found via The Department of the Treasury. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.