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Cryptocurrency transfers of more than $10K to be reported according to the IRS

Cryptocurrency transfers of more than $10K to be reported according to the IRS


TL;DR Breakdown

• The Securities and Exchange Commission wants to regularize cryptocurrency transfers.
• Colonial Pipeline case puts the IRS on alert.

Cryptocurrencies are going through the most volatile stage so far in 2021, with a few weeks of consistent enormous speculation. The internal tax service has taken a moment to clarify rules about the reporting of transactions. The IRS wants a market shrinkage of about $2 trillion.

The internal tax service of the United States revealed this Thursday that companies that earn in cryptocurrencies must report their financial books. This measure does not cover all companies but rather those with revenues of over 10 billion dollars. This measure, backed by the United States president, Joe Biden, blew up social networks.

The US project, supported by the IRS, will also act against investors who use cryptocurrency transfers to commit crimes. Digital currencies already have a widespread detection problem that facilitates illegal activities and tax evasion. The IRS is attempting to control this market, and believes this will be a significant development for Americans.

Colonial Pipeline case with cryptocurrency transfers

The North American Colonial Pipeline paid around 5 million dollars in cryptocurrencies after an attack on its system. The perpetrators of the crime were Russian groups linked to the Darkside piracy network. The hack caused all gas on the West Coast to run short for a few hours until the company paid the ransom.

This situation involving cryptocurrency transfers put the IRS on alert. The belief is that if the internal tax service does not restrict and regulate crypto operations, it could all become very chaotic.

This attempt at regulation also occurs when cryptocurrency trading has skyrocketed and also plummeted rapidly. Bitcoin, which reached its all-time high of $64,829, fell below $40,000 in recent hours. This decline in Bitcoin value came after Musk’s announcement about eliminating payments at Tesla using the cryptocurrency.

Cryptocurrency valuation also took a nosedive with the news from China regarding the banning of Bitcoin transactions by financial institutions. These two announcements have dealt significant blows to the journey of the main cryptocurrencies, but, according to crypto experts, this is not the end.

SEC to plan its crypto regulation

The US Securities and Exchange Commission, led by Gary Gensler, has suggested on several occasions it has plans to regulate cryptocurrencies. The SEC chair wants cryptocurrency transfers to be more secure, so cases like the Colonial Pipeline do not occur.

The largest crypto exchange Coinbase has also publicly shown support for regulation if done right. The cryptocurrency restrictions may not be bad, as this could give the token stability, security, and control.

Although cryptocurrencies were born as free currencies, today, the IRS believes their use has gone out of hand, seeing as this is not the first time Bitcoin and other cryptocurrencies have been used to perpetrate illegal acts.



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