Yellen Joins Regulation Effort... "Mandatory Reporting for Cryptocurrency Transactions Over $10,000"

US Treasury Announcement
Warning on Cryptocurrency Tax Evasion Atrocities
Strengthening Cryptocurrency Regulations to Expand Tax Revenue
Bitcoin and Others' Upward Trend Narrowed

Janet Yellen, U.S. Secretary of the Treasury
[Photo by Reuters]

[Asia Economy New York=Correspondent Baek Jong-min] Following China, warnings from authorities regarding virtual currencies have also emerged in the United States. They have declared their intention to thoroughly tax profits gained from virtual currencies. This is interpreted as a determination to close tax loopholes that may arise during the expansion of virtual currency trading.

With the Treasury Department's policy announcement, the price of Bitcoin is reducing the rebound that had continued after the sharp drop the day before.

On the 20th (local time), the U.S. Treasury Department announced guidelines requiring all virtual currency transactions over $10,000 to be reported to the Internal Revenue Service (IRS).

The Treasury Department specifically pointed out that "virtual currencies are widely facilitating illegal activities, including tax evasion, causing problems."

The Treasury Department made this announcement in relation to the IRS's expanded duties to secure tax revenue for the Biden administration's infrastructure investment plan.

Earlier, Treasury Secretary Janet Yellen mentioned at the Senate confirmation hearing, "I believe many virtual currencies are primarily used for illegal finance. It is necessary to consider ways to reduce such usage and prevent money laundering."

The IRS has been taxing capital gains from virtual currency trading for U.S. individuals since 2020.

Following the Treasury Department's announcement, the prices of virtual currencies such as Bitcoin have been declining. Bitcoin traded at $42,000 in the morning but fell to the $39,000 range after the Treasury announcement. The 24-hour increase rate also decreased to 0.9%.

Dogecoin rose to 42 cents with the support of Elon Musk but then narrowed to the 39-cent range.

This content was produced with the assistance of AI translation services.