Taxation of cryptocurrencies can bring the US $28 billion.
A bill has entered into force at the US Congress, which clarifies the expansion of taxation of cryptocurrencies. Now the law also affects the monitoring of the work of brokers on cryptocurrencies.
Detailing the amendments, the Senate added a provision stating that companies that trade cryptocurrency also belong to brokers. When the US president signs the document, centralized cryptocurrency exchanges, including Coinbase, will receive the status of a broker. This means that each such brokerage company will be required to make a report on all user transactions specifically to the US Internal Revenue Service (IRS).
Each cryptocurrency structure will prepare a form 1 099 for the regulator, in which the names and addresses of its clients are registered. The US Senate assumes that such an innovation in relation to reporting will allow for an additional $28 billion in tax funds from cryptocurrency companies.
Naturally, the owners of cryptocurrency exchanges are concerned about the expansion of the concept of “broker”. The consequence of this may be that blockchain validators, crypto wallet operators, as well as decentralized applications will fall under this value.
It is worth taking into account that most cryptocurrencies are anonymous. Therefore, it is not possible to comply with all the strict rules introduced. This does not bode well for cryptocurrency exchanges, as some areas in the field of cryptocurrency trading may slow down or completely stop. This means that the entire cryptocurrency market may suffer.
In July 2021, the bill was changed, from where the US authorities removed the miners. Following this, in August, thanks to the Senate, a bill came into force, where there were no explanations regarding cryptocurrency brokers. Further, the provision regarding cryptocurrency brokers migrated to the House of Representatives of the US Congress. The American authorities did not stop. Already in September 2021, the US Democratic Party made a proposal to raise tax rates for those who earn a lot. Taxes will also be higher for those who hold cryptocurrency.