The U.S Treasury department recently claimed to take steps to stifle the cryptocurrency market and all transactions related to crypto, stating only transfers that are worth $10,000 or more will be reported on the Internal Revenue Service.
Cryptocurrency poses a significant problem in regards to facilitating illegal activities including tax evasion, according to the Treasury Department. The IRS is called in to address the growing concern of digital assets. The Treasury Department also stated all cryptocurrencies and digital assets along with exchange accounts will be covered, while cash transactions with a market value of more than $10,000 will be reported.
Shortly after the Treasury’s announcement, Bitcoin prices have once again staggered according to Coin Metrics. The cryptocurrency is currently trading at 1.6%, while previously it was growing beyond 9%.
Wall Street analysts have been anticipating the active role that the Treasury Department, IRS, and the Securities and Exchange Commission would take in regulating the digital asset industry.
The Treasury Department’s announcement was released as a part of President Biden’s administration proposals to crack down on tax evasion, and endorse compliance. Among the administration staff, officials proposed facilitating the IRS with funding and resources and implementing stricter penalties on those who are elusive on their obligations.
Head of the SEC and longtime cryptocurrency expert, Gary Gensler, stated the SEC regulations on the cryptocurrency exchange will ensure the protection of investors and prevent the risk of market manipulation in the future.
The active role of the Treasury Department and the SEC could potentially prove to be a blessing for cryptocurrency investors. The involvement of short-term regulatory hurdles will come across as an issue for bitcoin and altcoin investors.
Regulating cryptocurrency has been prioritized by Democrats and Republicans due to price hurdles, and the growing concerns related to tax evasion in 2021.
