The U.S.Department of the Treasury tightened tax regulations on cryptocurrencies, and Bitcoin fell below $40,000 again

The U.S. Department of the Treasury will tighten tax supervision on the cryptocurrency market and transactions, stating that it will require a single cryptocurrency transaction worth more than $10,000 to be reported to the Internal Revenue Service, which is regarded as a proposal by the Biden administration to strengthen tax compliance an important part of it.

The U.S. Treasury Department stated in a press release on its official website:

The U.S. Treasury Department also pointed out that although cryptocurrencies represent only a small share of current commerce, comprehensive reporting is still necessary. This is to minimize the transfer of income under the new reporting system. opportunity and motivation. the

Some media said that the press release of the U.S. Department of the Treasury this time is one of the policy declarations of the Biden administration’s intention to combat tax evasion and promote compliance. In terms of specific steps, officials are considering proposals to increase IRS funding and technology, as well as tougher penalties for those who evade taxes. In 2019 alone, there was a gap of nearly $600 billion between what was owed to the U.S. government and what was actually paid, according to U.S. Treasury Department estimates.

Coin Center: The U.S. Department of the Treasury’s sanction against Tornado Cash may violate due process and constitutional rights: Jinse Finance reported that cryptocurrency advocacy group Coin Center published a blog post saying that the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanction against Tornado Cash may be legal and legal. Constitutionally flawed, Coin Center stated, “We believe that OFAC exceeded its legal authority by adding certain Tornado Cash smart contract addresses to the SDN list, which may have violated due process and constitutional rights.”

Coin Center believes that smart contracts cannot be sanctionable entities, and such a standard is dangerous for coders all over the world. The article stated, “This action sends a signal, and in fact seems to be designed to send a signal, that Americans should not use certain tools and software, even for perfectly legitimate purposes.” Coin Center promised that its first step would be to work with OFAC, but the group also said, “We will begin exploring court challenges to this action with attorneys. Stay tuned.” [2022/8/16 12:27:43]

Financial blog ZeroHedge quoted several senior cryptocurrency traders as saying that the U.S. Treasury Department’s move is generally positive, as it shows that “regulation” rather than “blanket ban” will be the way forward.

U.S. Treasury officials discuss stablecoin regulation with financial industry executives: U.S. Treasury Department officials met with financial industry executives this week to discuss potential stablecoin regulation. The U.S. financial regulator said it is working hard to understand the risks and opportunities that cryptocurrencies bring to the traditional U.S. financial system, and plans to issue a series of related reports in the coming months. This week's meeting suggested that work is picking up pace. U.S. officials are understood to have asked at a meeting this week whether stablecoins would need direct regulation if they became very popular. They also discussed how regulators should try to reduce the risk of too many people simultaneously converting stablecoins, and whether major stablecoins should be backed by traditional assets. Information gleaned from this week's meeting could help the Treasury prepare a comprehensive report on stablecoins in the coming months. (Golden Ten) [2021/9/11 23:17:11]

However, ZeroHedge also said that the move to report the large transaction came a week after Colonial Pipeline was hacked as strange. First, large transfers of income can be traced in the first place, which means that the IRS can easily find clues in the documents; Is part of the off-the-books income processed in U.S. dollars?

Voice | Former adviser to the U.S. Treasury Secretary: Libra is still a speculative concept. His position is only an independent director of Ripple, not an employee or executive director of their company. Since I believe in the future of blockchain, I decided to join Ripple, a company that created blockchain application scenarios. A lot of people are talking about blockchain, but Ripple has yet to create a viable business model that would make more people want to use it. For China, as I said before, a financially sound digital currency is a very good idea. This will create a digital currency within China. When people want to transfer funds out of or into China, the digital payment system will make this international transfer much easier. This shift is a positive message for many global blockchain players, including Ripple. Libra is just a speculative concept right now. I think even if this concept can be realized, it should be other companies or entities, not Facebook. [2019/11/13]

Talk of capitulation has also made its way into online forums about increased regulation, which could unnerve some cryptocurrency investors, though institutional views differ. Raymond James believes that with Gary Gensler becoming the head of the US Securities Regulatory Commission (SEC), it is only a matter of time before Congress grants regulators broader jurisdiction over cryptocurrencies. Gensler said earlier this month that allowing the SEC to regulate cryptocurrency exchanges would help ensure investor protection and prevent market manipulation.

Ruijie Financial analyst Ed Mills pointed out in early May that Gensler was previously regarded as a potential ally of cryptocurrency because he was a professor of cryptocurrency. regulatory risk. Mills said that increased regulation of cryptocurrencies may cause risks in the short term, but in the medium and long term it will further increase the legitimacy of such assets and may provide a regulatory moat for existing cryptocurrency exchanges.

It is worth noting that as early as April 20, there was news that the US government may implement supervision on digital currencies. Fox Business News reporter Charles Gasparino, citing sources at the time, said that the White House was discussing related regulatory measures, but the discussions were still in the early stages. The IRS has added cryptocurrency-related items to the 2020 version of the tax return form (Form 1040) to gain insight into cryptocurrency transactions.

After the news of tightening regulation was announced, the major currencies in the cryptocurrency market fell back quickly in the short term. Among them, after a plunge of more than 30% on May 19, Bitcoin rebounded by more than 40% today and once recovered $42,000 , but after the news was announced, it turned downward, and the $40,000 mark also fell for a time. Ethereum fell by more than 40% on May 19. Today, it rebounded to around US$3,000, which was about US$1,000 higher than the daily low. However, it fell by nearly 10% an hour after the news of tightening regulations was announced. According to CoinDesk’s market data, as of press time, Bitcoin was trading at $39,910.63, up 2.61% in 24 hours. Ethereum reported at $2790.73, up 4.43% in 24 hours. Dogecoin is trading at $0.4015, up 9.67% in 24 hours.

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