The Treasury Department on Thursday announced that it is taking steps to crack down on cryptocurrency markets and transactions, stating it will require any transfer worth $10,000 or more to be reported to the Internal Revenue Service (IRS). However it doesn’t take effect until 2023. Many crypto analysis see this announcement today as a signal to crypto investors, saying “You have been put on notice, pay your taxes.” For some crypto investors it’s good news that regulations are coming, which ushers in the birth of crypto mass adoption. However to others, it’s exactly what they didn’t want to hear.
JUST IN: The U.S. Treasury calls for stricter cryptocurrency compliance with the IRS. @ylanmui reports. https://t.co/4B1WuviVsK pic.twitter.com/NOu5nsqHw5
— CNBC (@CNBC) May 20, 2021
Crypto analyst are seeking the answer to the question, “what is the government’s strategy here?” It’s obvious that cryptocurrency has placed U.S. Regulators in a serious conundrum. “Cryptocurrency already poses a significant detection problem by facilitating illegal activity broadly including tax evasion,” the Treasury said. They will not just sit back and do nothing, allowing Bitcoin and other digital assets to become viable, competitive currencies. A country’s currency is a part of its sovereignty, and control of the U.S. money supply is perhaps its most important power. As previously reported by CNIRBC.com, The U.S. government’s need to create its own digital asset allows restriction in usage and authority in regulation and taxes.
Remember Bitcoin was developed in 2008 in response to the Great Financial Crisis. The crisis was created by banks and other mortgage lenders who generated the NINA (No-Income-No-Asset) Loans. With the invention of Bitcoin the Blockchain Trust Protocol was developed, removing banks from involvement in every financial transaction.
