Bitcoin, Blockchain & Cryptocurrency News

U.S. Authorities Set to Impose Stricter Crypto Taxes on Investors

United States lawmakers are looking to impose stricter taxation rules on crypto investors, in a bid to milk out roughly $28 billion from the industry and use it to fund part of the proposed $1 trillion bipartisan infrastructure deal that aims to invest over half a trillion dollars in the country’s public works system, according to reports on July 28, 2021.

U.S. Authorities Target Crypto Investors

At a time when the global cryptocurrency market is trying to recover from the mini bear season that started in May 2021, United States lawmakers are making plans to impose stricter tax rules that could further set back the country’s digital assets ecosystem.

Per sources close to the matter, the crypto taxation measures were hastily added to the $1 trillion bipartisan infrastructure bill on July 28, and the creators believe that its success would enable authorities to collect more taxes (at least $28 billion) from crypto investors and businesses.

Specifically, the proposal aims to tighten the noose on bitcoin-linked businesses and make it mandatory for digital asset transactions worth more than $10,000 to be reported to the Internal Revenue Service (IRS).

Crypto Industry Stakeholders React

Notably, Ohio’s Senator Rob Portman, the lead Republican for the bill discussions, hinted that he sees the addition of crypto taxation measures to the infrastructure bill as a breakthrough move as crypto reporting and taxation requirements has been an issue bothering Congress for some time.

“Everybody’s been talking about the appropriate way to provide more reporting in particular and that leads to better compliance,” he declared.

As expected,  the Blockchain Association, an organization focused on advocating for the innovation and collaboration necessary to foster growth in the country’s crypto space, has condemned the bill, describing it as highly problematic.

What’s more, the Association’s executive director has made it clear that the body is doing everything within its powers to make sure the proposed crypto taxation system is changed entirely.

In related news, U.S. authorities, including Treasury Secretary Janet Yellen, have been pointing their searchlights into stablecoins and the bitcoin mining sector and how to best regulate them. 

Presently, some crypto-related businesses are already finding it difficult to operate in the U.S., and the proposed bill, if successful, would no doubt further complicate matters for crypto investors in the region.

Published by
Ogwu Osaemezu Emmanuel

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