Crypto exchanges, some hosted wallet providers and payment processors will face new tax rules in as soon as two years. The proposal, which is opening
can file, resolving longstanding confusion over whether different versions of the U.S. tax form make the most sense for taxpayers.
Since the dawn of crypto, one of the nagging drawbacks of token transactions was the uncertainty about how to pay taxes on gains. The 2021 Infrastructure Investment and Jobs Act said the Internal Revenue Services had to work out how digital assets firms should report information on customers’ tax positions – something like a traditional brokerage’s 1099 forms that detail gains and losses.
“This is part of a broader effort at Treasury to close the tax gap, address the tax evasion risks posed by digital assets, and help ensure that everyone plays by the same set of rules,” said a statement from the Treasury explaining the proposed rule. Treasury officials also said the reporting demand would encompass some decentralized exchanges , if they check enough boxes to be seen as a broker. And unhosted wallet providers that also “facilitate or offer services to facilitate” their users buying or selling digital assets will be considered brokers, alongside hosted wallet providers.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Binance.US turns to crypto startup MoonPay after U.S. banks sever ties: CNBC Crypto WorldCNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what's ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today's show, Diffuse CEO Kenny Estes weighs in on what could have caused bitcoin's big drop last week and describes the opportunities for investors amid the current environment.
Read more »
North Korean Hackers May Cash Out Stolen Crypto; State of Crypto in Hong KongHost Angie Lau takes a deep dive into the state of crypto in Asia as Hong Kong Virtual Asset Exchange (HKVAX) becomes the third licensed crypto operator in the city. Plus, the Federal Bureau of Investigation (FBI) warns that North Korea-based hackers Lazarus Group and APT38 may attempt to cash out stolen bitcoin (BTC) worth more than $40 million. Those stories and other news shaping the cryptocurrency world are in this episode of 'Forkast IQ.'
Read more »
Bitcoin miner gets life in prison, China offers bounties for crypto firms: Asia ExpressRetail crypto trading is only days away in Hong Kong, but a mainland crackdown sees bounties offered for crypto firms and miners imprisoned.
Read more »
Crypto market bounces off recent sell-off, bitcoin rises to $26,500Cryptocurrencies rose Wednesday as investors continued to grapple with the market’s summer doldrums.
Read more »
U.S. Charges Two Alleged Founders of Crypto Platform Tornado Cash with Money LaunderingU.S. prosecutors charged two individuals allegedly behind decentralized cryptocurrency mixer Tornado Cash, saying they conspired to launder illicit funds and to violate U.S. sanctions.
Read more »
Crypto market bounces off of recent sell-off, bitcoin rises to $26,500Cryptocurrencies rose on Wednesday as investors continued to grapple with the market's summer doldrums.
Read more »