On Tuesday, world’s most used cryptocurrency – Bitcoin fell to a three week low due to warning signs and the call by U.S. lawmakers to tighten policies around crypto transfers.
The U.S. Treasury, last month, made a demand that crypto transfers worth at least $10,000 be reported to the Internal Revenue Service. Specifically, the treasury said that “as with cash transactions, businesses that receive crypto assets with a fair market value of more than $10,000 would also be reported”.
“By design, most crypto virtual currencies are designed to stay off the radar screen, so we will be challenged right now”, the IRS Chief Charles Rettig said on Tuesday. He was advocating that the Congress should provide clear statutory authority for the IRS, as this is required to go ahead with the plans of collecting information on crypto transfers worth at least $10,000. According to him, many of these transfer stay off the radar and go unreported. The treasury says that cryptocurrency is now as important as any other currency, is a small share of current business transactions and that tax should be paid on them.
While speaking before the Senate Finance Committee, the IRS Chief said that the crypto market had a market capitalization of at least $2 trillion dollars and that these transactions stay of the radar leaving the IRS in quite some dilemma.
The Internal Revenue Service (IRS) is therefore calling for autonomy and authority to be able to go on with its tax plans regarding cryptocurrency. “Cryptocurrency already poses a significant detection problem by facilitating illegal activity broadly including tax evasion”, the IRS said in its report last month.
Amidst the IRS seeking regulation for cryptocurrencies, the former President of the United States of America has come out to say that Bitcoin is a scam. He said this during a recent interview with Fox news yesterday, and according to him the currency was “based on thin air” and valueless.
Enterprise Software firm MicroStrategy owned by Bitcoin enthusiast Michael Saylor also announced its plans to invest $400 million in Bitcoin.
The most famous cryptocurrency has had quite some good days and reached an all-time high of $65,000. As at the time of writing this article, the price of Bitcoin was $34,000.
More actions surrounding Bitcoin regulation by the IRS are expected to happen as the cryptocurrency continues in popularity.