The US authorities will take control of all cryptocurrency transactions

The US authorities will take control of all cryptocurrency transactions

The US Internal Revenue Service (IRS) has requested an increase in funding to strengthen oversight in the crypto sphere.

According to the head of the IRS Rettig, the agency needs the authority to track all transfers in cryptocurrency in the amount of 10 thousand dollars.

The Tax Service expects an increase in the budget for 2022 to expand the capabilities of tax administration in the field of cryptocurrencies and the fight against cybercrime.

The capitalization of the crypto market has increased to $ 2 trillion, while the cryptocurrencies themselves are arranged in such a way as to remain out of sight, Rettig noted.

The IRS plans to create a complete internal dashboard of cryptocurrency blockchains.

In addition, it is proposed to impose obligations on crypto brokers and crypto exchanges to disclose information about their customers. In the tax form 1040, there will be items related to cryptocurrencies, which will simplify tax control in this area.

Under Rettig, the IRS launched activities to collect information about users of crypto exchanges that can evade taxes. In April, it became known that the agency is looking for a company that would provide it with tools for hacking hardware crypto wallets.

In an earlier green paper, the Biden administration made it clear that efforts to tax cryptocurrencies are aimed at narrowing the so-called tax gap.

According to IRS estimates, the US government's shortfall in taxes could recently increase to $ 1 trillion a year due to the emergence of new sources of income, including cryptocurrencies.

Meanwhile, the commissioner of the US Securities and Exchange Commission (SEC), Hester Pierce, in an interview with the Financial Times, said that too strict regulation of cryptocurrencies can harm financial innovation.

Trader Avatar


Other blogs by this trader

Robots can continue buying USD in the next two days
Robots can continue buying USD in the next two days The dollar started the new week with a strengthening, updating the 4-week highs on the DXY.Robots can continue buying USD in the next two days, according to Bloomberg.The dollar is strengthening ahead of the Fed's meeting this Tuesday and Wednesday, still benefiting from better-than-expected US retail sales data released last week. The data confirmed expectations of a reduction in asset purchases by the Federal Reserve by the end of the year.Strong data from the US revived bets on the imminent curtailment of QE from the Fed, supporting the dollar and causing an increase in bond yields. Fundamentally, the current situation repeats 2014, when the FOMC was on the verge of curtailing purchases on the balance sheet in a similar way.Trading robots, which perform more than half of the trading operations in the world, can be programmed to buy dollars in the next two days, as seasonal factors become bullish, writes Bloomberg. Data for the last five years point to the growth of the dollar index after September 20, which continues until Christmas.In the next 3-6 months, the dollar is likely to grow by 5% rather than decline by a similar amount, according to Wells Fargo. Now it is difficult to find a driver that could stimulate the weakening of the USD. A hawkish surprise from the Fed is much more likely than a similar surprise from the ECB.Morgan Stanley expects the euro to weaken against the dollar. The reason for such expectations lies in the difference in monetary policy between central banks.EUR/USD will fall to 1.15 by the end of the year, according to BNP Paribas. The pound may rise, as the Bank of England will be "much more responsive to the economic recovery than the ECB."
Sep 20, 2021 Read
A well-known billionaire predicted the collapse of cryptocurrencies "to zero"
A well-known billionaire predicted the collapse of cryptocurrencies The billionaire who brought down the US mortgage market in 2008 predicted the collapse of cryptocurrencies and the collapse of their value "to zero".Well-known billionaire and hedge fund manager John Paulson in an interview with Bloomberg called cryptocurrencies "a limited supply of emptiness" and said that they "will fall to zero"."It doesn't matter where cryptocurrencies are traded today — in the end they will turn out to be useless. When the boom passes and their liquidity runs out, the value of cryptocurrencies will fall to zero, " the investor said, but did not say how long it will take.Paulson gained fame by earning a fortune by playing for short during the 2008 financial crisis, when housing prices collapsed in the United States.At the same time, he does not advise selling bitcoin, given its extreme volatility. Instead, Paulson suggested investing in gold bars because of the "very limited amount of such gold".Last week, one of the officials of the People's Bank of China (PBOC) also said that bitcoin has no "real value" and is not a legal tender. The NBK once again confirmed that it is not going to soften its position on cryptocurrencies.The Chinese government continues to tighten its policy towards the cryptocurrency industry as it actively tests and prepares for the official launch of the digital yuan, the state cryptocurrency of the People's Republic of China. At the request of the Central Bank of China, banks and financial organizations have stopped servicing any clients working with cryptocurrencies.
Sep 01, 2021 Read
The Solana token soared by 50%, taking the eighth place in the rating
The Solana token soared by 50%, taking the eighth place in the rating The Solana (SOL) token has risen in price by 50% over the past 4 days, soaring to the eighth place of the CoinGecko rating by capitalization.On Monday, August 30, SOL set a new historical record value above $114.Over the past month, the cryptocurrency has increased in price by 250%, since the beginning of the year - by more than 70 times.On Monday morning, Solana exceeded the round $100 mark for the first time. In the late afternoon, the token overcame $110.The last wave of growth of Solana began on August 27 after the announcement of the developers of the digital coin. On the project's Twitter page, a message appeared about the update, which will take place on August 31 and will introduce a new function in the Solana blockchain called "Ignition". The developers have not provided any more information about the update, however, according to Cointelegraph, "Ignition" may introduce a mechanism for burning tokens.Token burning is the destruction of a certain number of tokens to reduce their number in circulation. This method is used to combat inflation and increase the value of cryptocurrency. All coin burning operations are recorded in the blockchain as transactions, so anyone can verify that the coins were destroyed.Institutional interest is pushing the Solana rate to new highs. Significant capital is being invested in the ecosystem and the Solana platform is in the early stages of development. The project has a large community — over 84 thousand people in Telegram, and more than 250 projects have been launched on its blockchain.Solana is a blockchain designed to support scalable decentralized applications (dApps). It has a maximum throughput of more than 50 thousand operations per second, while its main competitor Ethereum currently has a limit of no more than 30 transactions.Nevertheless, despite the technological advantages, it is still premature to talk about the superiority of Solana over Ethereum. Critics point out that Solana is still working in the test network mode, which means that all services on its blockchain, including DeFi, are subject to failures.
Aug 31, 2021 Read
Bank of America predicted turmoil in the stock markets
Bank of America predicted turmoil in the stock markets In the coming months, stock markets expect shocks, according to Bank of America (BofA).Investors underestimate the risks of changes in the monetary policy of the US Federal Reserve.The S&P 500, a key indicator of the US stock market, has risen by more than 90% since reaching a pandemic low in March 2020. It has consistently reached record high levels over the past few months.The sell-off last week was a sign that investor sentiment remains nervous and may be vulnerable to more serious shocks in the future, Bank of America said.According to the bank's experts, the US stock market underestimates the risks of the impending tightening cycle, ProFinance writes. Record high stock prices and a possible change in the Fed's policy have increased the risk of an "instability shock" that threatens the stock market in the coming months.Fed Chairman Jerome Powell's speech at a virtual meeting of central bank leaders in Jackson Hole on Friday may provoke stock market volatility, BofA warns.According to the chief technical strategist of Bank of America, Paul Ciana, there are signals threatening to turn the markets down, writes the BCS. The ratios of key market instruments do not favor purchases of risky assets, he believes.The ratio of US government bonds to the broad Russell 2000 stock market index reached a new historical low in March and has since increased. According to Ciana, historically, when this indicator recovered from such low levels, it preceded the period when the bond market surpassed the Russell 2000, that is, stock markets were under pressure.In addition, debt securities also rose against copper and oil, which is another negative signal, including for global economic dynamics.
Aug 25, 2021 Read
Bitcoin fell sharply after the decision of the US Congress
Bitcoin fell sharply after the decision of the US Congress Bitcoin on Tuesday fell by $ 1,500 in a few hours after the decision of the US Congress not to amend the controversial law.Since Monday's highs of about $50,500, the first cryptocurrency has already lost about $3,000, falling below $48,000.The greed and fear index of bitcoin and the largest cryptocurrencies switched yesterday to the “extreme greed”mode. According to the idea of this indicator, the higher it is, the closer the sale is.Bitcoin fell sharply in the US session on Tuesday, when insiders got access to information on the initiative of the Committee on Internal Rules of the US Congress. The Democrats who control this body have blocked amendments to the so-called "Biden infrastructure plan".This law introduces new rules for the taxation of cryptocurrencies in the United States, providing for reporting on all crypto transactions, which entails the decryption of personal data.By law, these rules apply not only to brokers and exchanges, but also to node owners, wallet operators, developers of DEX exchanges and DeFi services. The adoption of the new rules will actually stop their activities on the territory of the United States. The law will work from next year.Meanwhile, on Tuesday it became known that MicroStrategy has invested another $177 million in bitcoin. The position size exceeded 108 thousand BTC. According to reports for the US Securities and Exchange Commission (SEC), MicroStrategy acquired another 3,907 bitcoins at an average price of $45,294 per coin, taking into account commissions and overhead costs.Tether has resumed issuing its USDT stablecoin after a two-month break. Since August 1, at least 2.3 billion new tokens have been issued. Tether and experts say that the demand for USDT has recently started to grow again as the mood of market participants improves.
Aug 25, 2021 Read
Cardano (ADA) continues to break value records
Cardano (ADA) continues to break value records Cardano (ADA) on Monday set a new historical high above $2.95, adding more than 13%.Since the beginning of the month, the third cryptocurrency has risen by 120% on the expectations of smart contracts.Cardano is growing ahead of the blockchain update. Director of Marketing and Communications at IOHK (Cardano issuer) Tim Harrison announced the release of the Alonzo hard fork on September 12. Alonzo will add support for smart contracts and the ability to create decentralized applications (DeFi) to the Cardano blockchain.Another favorable factor is the listing of ADA on the Japanese Bitpoint exchange, which will take place on August 25. Previously, ADA was not available in Japan, and the project noted that it is very difficult to obtain permission for the circulation of the token under the strict requirements of the local regulator.In addition, last Wednesday, IOHK announced the upcoming launch of the djed algorithmic stablecoin, which will be one of the first scenarios for the use of new smart contracts.Now everyone expects growth above $3.0, which will put Cardano (ADA) on a completely different trajectory. The network data provider Santiment reports that this is quite possible in the conditions of increased euphoria of investors, writes cryptocurrency.tech.The third cryptocurrency is now enjoying success with investors from Wall Street. According to a survey by Gemini crypto exchange, about 40% of crypto investors in Singapore also invested in Cardano.Recall that in July, the Cardano Foundation presented a development plan for the next five years. By 2026, at least three Fortune 500 companies will use the Cardano cryptocurrency, 50 banks will become partners of the Cardano Foundation, and the user base of the platform's ecosystem is planned to increase to 1 billion.
Aug 24, 2021 Read
Bitcoin Exceeded $50,000 after PayPal's Decision
Bitcoin Exceeded $50,000 after PayPal's Decision Bitcoin on Monday rose above the round mark of $50,000 after PayPal's decision to expand the cryptocurrency service outside the United States.The first cryptocurrency has not traded so high since mid-May.The payment giant PayPal has announced that it is expanding the cryptocurrency service beyond the US, starting with the UK.PayPal began to explore the cryptocurrency space in October last year, offering its American customers the opportunity to buy, sell and store bitcoin, ether, Litecoin and Bitcoin Cash.In the first months of operation, British users will be able to get access to trading the same four digital assets as in the United States. You will be able to participate in the auction both through the PayPal website and in the mobile application. As in the US, the service in the UK will be carried out through the intermediary of Paxos.The withdrawal of cryptocurrencies from PayPal to third-party wallets is still impossible, but the company assures that it is working on this. Investments are available from 1 pound or $1. British clients will not be able to invest more than 15 thousand pounds for a week and 35 thousand for a year. In the US, the limit is $100 thousand per week.PayPal earns money on the cryptocurrency service due to the commissions charged to users. With transactions of more than a thousand dollars in the United States, customers have to pay 1.5%, while purchases of less than $25 are subject to a fee of 50 cents.After a break above $50,000, the hype sentiment will return to the market. Purchases will strengthen, and there will be conditions for a more aggressive rally, some experts believe.The CEO of the cryptocurrency fund Three Arrows Capital, Su Zhu, expects bitcoin at $88,888, and this, according to him, will not take two months. At the beginning of the year, he admitted that BTC could reach $2.5 million, provided that the first cryptocurrency will be able to take over the status of the main means of accumulation from gold."The end of the summer lull may increase the fluctuations of the crypto market. It is likely that as large capital returns from vacation, we can expect a very hot autumn and an equally hot winter
Aug 23, 2021 Read
The US Federal Reserve scared Bitcoin traders
The US Federal Reserve scared Bitcoin traders Bitcoin lost more than $ 1,000 in a few hours, and on Thursday it fell below $44,000 after the first mention of cryptocurrencies was made in the published minutes of the Federal Reserve on Wednesday.Some heads of the regulator are concerned about the risks associated with trading cryptocurrencies, it was said in the protocols.Members of the US Federal Reserve for the first time introduced information about the discussion of cryptocurrencies in their minutes of the last meeting, which are usually published with a delay of several weeks.The publication of the minutes contains the results of the voting of 18 FOMC members and their comments on monetary policy, having a strong impact on the financial markets. Yesterday's document brought down US stock indexes, which led to today's stock sales in Asia.Investors reacted negatively to the decision of the majority of Fed bankers about the upcoming reduction of the monthly bond repurchase program by $120 billion, until the end of 2021. The disappearance of this incentive will deprive speculators of access to "cheap" money, which in turn will reduce the volume of investments in risky instruments.Earlier this week, the president of the Federal Reserve Bank in Minneapolis, Neil Kashkari, returned to criticizing cryptocurrencies at the annual Pacific North West Economic Region summit."I was more optimistic about cryptocurrencies and bitcoin 5-6 years ago. All that I have seen so far is 95% fraud. Thousands of garbage coins have been created. Some of them are obvious fraudulent financial pyramids that rob people," he said on Tuesday."I have not seen any other applications of bitcoin, other than the financing of illegal activities such as drugs and prostitution," Kashkari added. He also rejected the idea that bitcoin could be useful for US residents as a means of hedging inflation.As the decline continues, anxiety is growing among the participants of the crypto market, as the first cryptocurrency failed to develop growth above $48,000 and is now heading south. Nevertheless, Glassnode experts still see signs of a possible occurrence of FOMO due to a significant outflow of bitcoins from crypto exchanges.
Aug 19, 2021 Read
Message sent successfully.
We will contact you soon!