The Biden administration has revealed its budget proposal for the year 2022, and the revenue proposals for the administration by the treasury are also released as a tandem to this budget. It seems that Biden’s budget provides the crypto world with a lot of boost as a large chunk of the budget is to be spent on making the cryptocurrencies as available for people as they can be.
People could get more involved with cryptocurrencies. There is also some initiative present for setting up the mining centers where mining of cryptocurrencies such as Ethereum and Bitcoin can occur. But the US treasury is more focused on saving the day as tax evasion using crypto assets is a real problem and needs to be addressed.
US Taxable Money should not end up being Converted into Cryptocurrency
According to the US treasury, the crypto market is global and provides US citizens with opportunities to conceal their assets and taxable income. They can do this by using the services of the offshore crypto exchanges and easily sending all of their tax-deductible income there only to change it into cryptocurrency, which is not traceable, thus commencing into tax evasion. The US treasury is in the works to expand some requirements to the crypto exchanges and wallets to report the beneficial owners of the cryptocurrencies that are registered with them.
This report would then go to the automated international reporting networks. The US is already a member, making it easier for the US money to be tracked and traced if it has not been deducted for the tax that applies. The cryptocurrency offers a lot of benefits but at the same time poses the high risks that a centralized financial system is most afraid of, such as money laundering and tax evasion.
Certain rules and regulations should be in effect to stop the transfer of taxable money into the crypto assets among the regions that are outside of the US jurisdiction. With these new resolutions, all the taxable money ending up converted into cryptocurrency would be reported to stop tax evasion.