Treasury Department to Watch Cryptocurrencies More: New Tax Measures

Reaffirming vigilance on cryptocurrencies is necessary for the Treasury Department, considering that they are a target for illegal activities, especially tax evasion

Photo: Photo by MANDEL NGAN / / AFP / Getty Images

As spokesmen for the Joe Biden government had mentioned, months ago, the Department of the Treasury will promote measures to ensure that Americans who pay for goods or services with cryptocurrencies do not bypass the treasury when filing annual taxes.

This information was released by the Treasury Department in a report released this Thursday in which he reported the new measures to be taken:

• The , 000 dollars will be required to declare it to the Internal Revenue Service (IRS). Exactly similar case to when companies make transactions for the same amount in cash.
• Payment service providers must submit their declaration with the form 1099.
  The intention is to discourage businesses from hiding their income through alternative means to the traditional banking system.

  The department headed by Janet Yellen is determined to reaffirm surveillance of cryptocurrencies, considering that they are a target for illegal activities. Especially tax evasion and money laundering.

  It is unknown if other regulations come, since for months the president of the State Stock Exchange Commission United States (SEC), Gary Gensler, had mentioned something about this regulatory framework by saying that “I was only awaiting instructions from the Treasury Department to establish and announce the regulations.”

  On the other hand, already the IRS let it be known that it could seize virtual currencies from users who do not pay their past due tax debts .

  In the same area, it is known that a team from the current government administration has been investigating for months the creation of a digital currency of the central bank of the United States. Although apparently they are experimenting with digital money technology rather than the idea of ​​implementing it In the United States, that has not yet been raised, according to Jerome Powell, president of the Federal Reserve.

  After days in which cryptocurrencies were losing value, once The Treasury Department released this information, yesterday Thursday, virtual money gained a bit of ground, although the accumulated of the week closes in red for most cryptocurrencies.

  At the time of writing this note, bitcoin, one of the most traded currencies, had a cumulative fall of the last 7 days of almost a 23%, trading at $ 35, 711.

  In addition, this week the virtual money market was marked by the decision of China to prohibit the purchase and sale of cryptocurrencies in its financial institutions.

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