US authorities to require crypto firms to share customer data

The US Treasury proposed expanding brokers’ reporting requirements for cryptocurrencies, according to explanations accompanying the 2022 budget proposal.

The department argues that as the digital-asset market grows, taxpayers have gained the opportunity to evade taxes.

“Tax evasion using crypto assets is a fast-growing problem,” the Treasury said.

The initiative would extend to bitcoin exchanges and custodial wallets as well. They would be obliged to transmit information about account beneficiaries to the international information-sharing network of which the United States is a member.

If approved, the measure would take effect in 2023.

The Treasury also proposed a ‘comprehensive financial-account reporting’ rule. The rule would apply when taxpayers acquire crypto assets from one broker and transfer them to another.

The department had previously clarified that the Biden administration’s proposal includes a requirement to transmit to the IRS information about cryptocurrency transactions for amounts of $10,000 or more.

Caitlin Long, CEO of the Avanti cryptocurrency startup, described the actions as clearing the regulatory field for digital assets, but ruled out a ban on bitcoin.

General Explanations FY2022 by ForkLog on Scribd

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