Proposed cryptocurrency regulations are in the first budget released by Joe Biden's White House.

President Joe Biden’s 2022 budget proposal includes several new crypto reporting requirements, according to a pair of documents published Friday.

The budget published Friday, the first from the Biden administration, includes two proposals that would give the Treasury Department additional requirements around what type of information financial institutions must report to the Internal Revenue Service (IRS) or other Treasury sub-departments.

The first proposal, mentioned in the White House budget itself, would “expand broker information reporting with respect to cryptocurrency assets.”

A Treasury Department “Green Book” provided more context, saying the proposed change would “expand the scope of information reporting by brokers” by allowing them to share information across different jurisdictions that have partnered with the U.S.

The document states:

The proposal would require brokers, including entities such as U.S. crypto asset exchanges and hosted wallet providers, to report information relating to certain passive entities and their substantial foreign owners when reporting with respect to crypto assets held by those entities in an account with the broker.

Gross proceeds, sales and “substantial foreign owners” in passive entities would be included in these reports.

The proposal would take effect for returns filed after Dec. 31, 2022, according to the document.

“Tax evasion using crypto assets is a rapidly growing problem. Since the industry is entirely digital, taxpayers can transact with offshore crypto exchanges and wallet providers without leaving the United States,” the Treasury Department document said as an explanation for the proposal.

Information reporting

The 2022 budget includes several other crypto reporting requirements, according to the Treasury document.

The second proposal to introduce a “comprehensive financial account reporting” structure for tax compliance purposes, would require financial institutions to report data on user accounts with a breakdown on different types of transfers above a de minimis threshold of $600.

This would include crypto asset exchanges and custodians, the document said.

“Separately, reporting requirements would apply in cases in which taxpayers buy crypto assets from one broker and then transfer the crypto assets to another broker, and businesses that receive crypto assets in transactions with a fair market value of more than $10,000 would have to report such transactions,” the proposal said.

The budget comes just over a week after the Treasury Department proposed that financial institutions and other businesses which receive transfers of over $10,000 in crypto to report those to the IRS. The proposal is similar to a Financial Crimes Enforcement Network proposal as well.

All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Bitcoin price jumps in line with stock-to-flow model, $288,000 BTC by 2024

The short squeeze that triggered Bitcoin price recovery now signals that the asset is likely headed toward a new top. On-chain analysts share a bullish outlook, recovery in line with Plan B’s S2FX model.

More Bitcoin News

ADA looks to retrace 11% after massive rally

ADA rallied exponentially after coming close to retesting the range low. However, after this intense run-up, ADA investors are likely to book profit, leading to a pullback. Therefore, investors need to be aware of a downswing in the short term.

More Cardano News

Tether executives to face criminal probe in bank fraud

Tether is cooperating with law enforcement agencies as Tether executives are scrutinized for bank fraud. The probe by federal agencies first started in 2018 and has now reached a peak alongside a global crackdown on stablecoins by authorities. 

More Tether News

Grayscale knows something about Ethereum Classic that retail doesn't as it offloads 28,382 ETC

ETC is contemplating testing a confluence of resistance level around $61.84. Grayscale Investment offloads 28,382 ETC over the past month, suggesting shifting goalposts. A decisive 12-hour candlestick close above $61.84 could lead to a 35% upswing to $83.88.

More Ethereum News

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP