US authorities reveal new requirements for cryptocurrency reporting in the budget for 2022

The administration of US President Joe Biden on Friday presented a draft version of the budget for 2022, several points of which affect the regulation of cryptocurrencies. The Ministry of Finance is proposed to give additional powers to collect information on cryptocurrency transactions within the Internal Revenue Service and other divisions. Explanations are contained in the accompanying publication of the Ministry of Finance.
“Tax evasion when using cryptoassets is a rapidly growing problem,” the ministry said. "The global nature of crypto markets provides US taxpayers with opportunities to hide assets and taxable income through offshore crypto exchanges and wallet providers."

US authorities reveal new requirements for cryptocurrency reporting in the budget for 2022

The Ministry of Finance proposes to expand the requirements for cryptocurrency brokers, including exchanges and custodian wallets, so that they transfer information about the beneficiaries of the accounts to the international information exchange network, of which the United States is a member. The measure is also aimed at identifying business owners - from this year, US law prohibits anonymous ownership of corporate entities. Crypto exchanges operating in the United States must already store information about their customers, so the changes primarily affect the international exchange of information.
"The proposal will require brokers, including entities such as US cryptoasset exchanges and wallet providers, to transfer information about certain passive entities and their significant foreign owners when transferring information about cryptoassets found in brokerage accounts of such entities," the agency writes. If approved, the requirement is expected to apply to accounts filed after December 31, 2022.
The Ministry of Finance also proposes to introduce "comprehensive reporting on financial accounts." “Separately, reporting requirements will apply in cases where taxpayers purchase crypto assets from one broker and then transfer them to another. Companies receiving cryptoassets in transactions with a fair market value above $ 10,000 will have to report them, ”the document says.
FX24

Author’s Posts