The US Treasury Department’s Financial Crimes Enforcement Network (FinCEN), which oversees possible breaches of domestic financial law, has asked U.S. citizens to pay more than $ 10,000 in digital currency to providers of financial services or virtual assets abroad. This country has to report it.
To Report On New Year’s Eve, just three weeks before the change of Secretary of the Treasury, FinCEN announced its intention to amend the Regulations on Foreign Banking and Financial Accounts (FBAR) under the Banking Information Privacy Act (BSA).
A brief statement issued Thursday said:
FinCEN intends to propose amendments to the Banking Confidentiality Rules on the reporting of foreign financial accounts to include virtual assets as accounts receivable.
The announcement does not specify a timeline for the release or implementation of this new plan.
With this change, FBAR rules appear to apply to digital assets held by US citizens abroad as they apply to cash. This can have the greatest impact on users of bitcoin and bitcoin digital currencies.
Currently, FBAR rules apply to individuals who have a total of more than $ 10,000 in assets, including Fiat currencies, in foreign financial accounts. The current regulations do not include virtual currencies as a transferable account under FBAR regulations, but this amendment will end this exemption.
According to the Internal Revenue Service (IRS) website, FBAR reports should include the account name, account number, name and address of the foreign bank, account type, and the maximum amount held in the account during the year.
According to the website, those who fail to file the case and report the information will face various penalties, including fines.