According to documents released yesterday, the Biden government’s proposed budget for 2022 includes conditions that could make the work of exchange offices and wallet service providers more difficult from now on.
to the the report CoinDesk, this is the first budget program presented by the Biden government. In this program, two plans are presented. According to them, the Ministry of Treasury sets new requirements for the information received from financial institutions. This received information is sent in the form of a report to the sub-branches of the Treasury Department, such as the Internal Revenue Service (IRS).
One of these plans, outlined in the White House budget, expands brokerage information reported on encrypted assets.
The Treasury Department, in documents released, states that the changes will expand the scope of information that agencies are required to report because they allow information to be shared in the jurisdictions of US partners. Some of these documents state:
The brokers’ proposal, including institutions such as digital currency exchanges and hot wallet providers, requires that they provide information about specific non-US subordinate entities when providing information on the assets held by the brokerage.
In another part of this document, it is mentioned that this plan will be implemented in connection with the revenues that have been registered after the end of 2022.
Tax evasion is expanding using encrypted assets. Because the field is fully digital, taxpayers can interact with foreign wallets and exchanges without leaving the United States.
The US Treasury Department says the 2022 budget plan has added digital currency reporting requirements.
In another plan, a “comprehensive financial account report” is to be implemented. This plan is a structure to achieve tax goals. Under the plan, financial institutions must report data on user accounts and various types of financial transfers that exceed $ 600. Documents from the Treasury Department state that digital currency exchanges and safe-deposit platforms will also be included in the plan. Part of the proposal states:
In addition, reporting requirements will apply in cases where the taxpayer purchases an encrypted asset from one brokerage and transfers it to another. A business that receives this asset at a fair market price of more than $ 10,000 will be required to report the transaction.
The plan comes as the US Treasury Department recently issued a proposal that financial institutions and other businesses receiving more than $ 10,000 in digital currencies should report to the IRS. Earlier, the Financial Crimes Network (FinCEN) presented a similar plan.