U.S. Treasury Secretary Asks For Kirpto Transactions Above 10,000 U.S. Dollars To Report
JAKARTA – United States financial authorities announced regulations that put pressure on cryptocurrency owners. U.S. Treasury Secretary Janet Yellen informed us that every cryptocurrency transaction starting from 10,000 U.S. dollars and above is reported to the tax agency, Internal Revenue Services (IRS).
Yellen claims that cryptocurrencies have so far been used to facilitate illegal activities, one of which is tax evasion. This is the cause of the U.S. government to monitor the growth of cryptocurrencies.
"Cryptocurrencies have led to significant detection by facilitating widespread illegal activities including tax evasion. This is the reason why the president's proposal to add IRS authority to monitor the growth of crypto assets," Yellen said as quoted from CNBC International on Friday, May 21.
"In the context of reporting new financial accounts, cryptocurrencies, crypto asset exchange accounts and payment service accounts that accept cryptocurrencies fall into this rule. Furthermore, such as cash transactions, businesses that receive crypto assets with a value of more than 10,000 U.S. dollars should also be reported," Yellen added.
Yellen announced the policy in the context of the government's decision to crack down on tax evasion while campaigning for compliance with the government.
A number of proposals are being gobbled up by the government, namely funding and technology support to the IRS. In addition, the government is also discussing the penalties that will be given to crypto investors who do not report.
The U.S. Treasury Department said in 2019 there was an unpaid tax of 600 billion U.S. dollars to the country. In this ongoing policy, Both Democrats and Republicans agreed to prioritize cryptocurrency regulation by 2021.
The U.S. government considers that skyrocketing cryptocurrency prices to date have raised market manipulation concerns. In addition, retail investors also do not receive good information regarding these conditions.