US government seeks to collect data on cryptocurrency transactions

“I think we need the authority of Congress,” he said. Charles Rettig in his testimony before the Senate Finance Committee. “It’s a constant challenge, and having a clear opinion of Congress so that we can gather this information is essential.”

Rettig said the cryptocurrency’s market cap is over $ 2,000 billion, with over 8,600 markets worldwide, “and by design, most virtual cryptocurrencies are meant to stay off the radar. “.

President Joe Biden’s administration has targeted volatile crypto markets to collect capital gains taxes., and to act against the illicit uses of digital currencies, more and more demanded by the perpetrators of the hijacking of corporate computer networks.

The government’s revenue proposals for fiscal 2022 include a new requirement that cryptocurrency transfers of $ 10,000 or more be reported to the IRS, in the same way that banks report cash transactions from this amount and that brokers report securities transactions to the IRS.

The proposed change would begin in 2023.

Rettig said the huge gains from rising crypto asset valuations escape the IRS, contributing to a “tax gap” that he estimates at $ 1,000 billion a year – that is, the difference between the taxes legally due and those collected.