Cryptocurrencies

Tax evasion and cryptocurrency, Biden tightens the screw

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A new day, a new crusade against the world of cryptocurrencies. When it’s not the eccentric and untouchable from home You’re here who tests the limits of his power to manipulation in the market, it is the governments that are trying to manage this new economy as best they can while taking their share of the pie, of course!


Nothing escapes the eye of the American tax authorities!

Live my life as an American crypto-investor

It is now the turn of the administration of Joe biden to take a serious look at the issue of tax evasion via digital currencies. A phenomenon which would amount to more than 1000 billion dollars according to the estimates of the‘Internal Revenue Service (IRS). And as you will see, the American tax authorities do not laugh when it comes to money and all means are good to recover them!


The life of an investor in the USA is already difficult with many SEC restrictions greatly reducing their scope of possibilities vis-à-vis cryptocurrencies. And to this is added a most disadvantageous tax system taxing any crypto-to-crypto transaction. So if you still thought you were the unluckiest in the (relatively) soft hands of the French tax system, think again. You are rather well off compared to our neighbors across the Atlantic for whom investing in a virtual currency is very complex ! And their situation is not about to improve, quite the contrary.

IRS is watching to flush out tax evaders

The new proposal from “Greenbook” intends to drive the point home of global surveillance. By pinning American taxpayers who made the fatal mistake of not reporting the slightest movement of cryptocurrencies.

The proposal which is expected to enter into force 2023 is justified as follows:

“The global nature of the cryptocurrency market offers US taxpayers the ability to disguise taxable assets and income using cryptocurrency exchanges and offshore wallet providers. “

Greenbook

This measure would be intended as much residents and expatriates american. And yes, the policeman of the world has this unique characteristic of never taking his eyes off his citizens. No matter where they decide to call home, they remain liable for tax in their country of birth. And, investing in virtual currencies involves the same restrictive reporting obligations for them. Nothing and no one escapes the eye of Big Brother.

Concretely this would take the form of data collections from financial institutions abroad and would concern any movement, purchase or sale of digital assets. More an obligation for companies to report any crypto transfer exceeding $ 10,000.
In short, a practice similar to what was already done in terms of sharing banking information with the various countries that have signed the FATCA agreement.

The US Treasury does not intend to spare the few courageous investors who embark on the adventure of cryptocurrencies. On the one hand, making life tough for crypto traders and businesses with the help of strict regulations, while not missing to come and seize the fruit of their labor as soon as these virtual currencies become too large. The IRS clearly has no intention of letting a single penny slip away from this juicy new economy, much to the chagrin of the poor American taxpayer.

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A strong believer in the cryptosphere since 2017, I am fully involved in the modern revolution represented by this new industry.

As Editor, I like to play a different role, educational and informative, with a view to the democratization and popularization of this universe.

DISCLAIM

The comments and opinions expressed in this article are those of the author alone, and should not be considered as investment advice. Do your own research before making any investment decisions.

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