The US is ready to implement a new policy on crypto, here are the rules

Source: CoinDesk | Editor: SS Kurniawan

KONTAN.CO.ID – WASHINGTON. US President Joe Biden’s 2022 budget proposal includes several crypto reporting requirements, according to two documents published Friday (28/5) last week.

The Biden Administration’s first budget includes two proposals that would provide additional requirements around what type of information financial institutions should report to the Internal Revenue Service (IRS).

Quotes CoinDesk, in the proposal first budget 2020, the US will “expand broker information reporting with respect to crypto assets”.

The Treasury’s “Green Book” provides more context, will “broaden the scope of information reporting by brokers” by enabling them to share information across the multiple jurisdictions the US has partnered with.

Also Read: The price of bitcoin shrank, see 3 reasons why Warren Buffett hates this cryptocurrency

“Brokers, including entities such as exchanges and crypto wallet providers, report information relating to certain passive entities and their substantial foreign owners when reporting crypto assets held by those entities,” the Treasury Department’s “Green Book” wrote.

Reporting data about user accounts

Gross income, sales, and “substantial foreign ownership” in passive entities will be included in the report. This rule of thumb will apply to submissions after December 31, 2022.

“Tax evasion using crypto assets is a rapidly growing problem. Because the industry is fully digital, taxpayers can transact with exchanges and crypto wallet providers without leaving the United States,” the Treasury Department’s “Green Book” states.

Budget 2022 includes several other crypto reporting requirements.

Also Read: List of young billionaires who are rich from crypto money and bitcoin

<!–