The US calls for stricter rules on cryptocurrencies as reports to the Treasury for transfers of more than $ 10

Joe Biden wants to give more power to the United States Treasury to be able to regulate more the trade of cryptocurrencies. According to a new report from the US Department of the Treasury, the administration wants to establish new requirements that would make it easier for the government to see how money moves, including digital currencies.

The report notes that cryptocurrencies pose a significant “detection problem» and are regularly used by the highest earners who wish to evade taxes. The changes proposed by the government of Joe Biden would create new reporting requirements that taxpayers currently use to report earned interest. Exchange houses and cryptocurrency owners would be required to report more information about the operations they do, and they must report cryptocurrency transactions above $ 10, according to the new requirements.

More regulations on cryptocurrencies

While one of the reasons for the momentum of cryptocurrencies is to operate money that is not controlled by banks or monitored by governments, little by little they are losing this factor. Joe Biden wants to regulate them to prevent them from being used to defraud, and China practically has banned its use across the country. This has caused a huge crash of the value of all cryptocurrencies. With this regulation, the US wants to minimize incentives and the opportunity to divert revenue through cryptocurrencies.

The Treasury Department notes that wealthy taxpayers can often escape paying fair taxes through complex schemes that the U.S. Treasury has no resources to follow. They collect 99% of taxes owed on wages, but it drops to 45% on non-labor income. This difference greatly benefits those with high incomes with less transparent sources of income such as cryptocurrencies. They argue that these less transparent sources are particularly available to those at the higher end of the income distribution, who are those who can avoid taxes through sophisticated strategies such as offshoring, creating complex partnership structures, or shifting taxable assets to cryptoeconomics.

The report details a multi-year effort to strengthen enforcement of the US Treasury, which would generate up to $ 700 billion in tax revenue over the next 10 years. Proposed changes to cryptocurrency regulation in the US, if implemented, would take effect from 2023.

Source: TechCrunch