Biden Administration Pushes Global Crypto Data Sharing Rules in $3.5 Trillion Budget Bill: Report

September 1, 2021

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The U.S. Treasury is reportedly pushing to include more rules for tax compliance on cryptocurrency transactions in the upcoming $3.5 trillion budget plan.

The Biden administration is hoping to add the requirements for crypto businesses to report information on foreign account holders “so that the U.S. can share information with global trading partners,” Roll Call reported Monday, citing an administration official who wasn’t authorized to speak for the record.

According to the Treasury’s Greenbook, “The global nature of the crypto market offers opportunities for U.S. taxpayers to conceal assets and taxable income by using offshore crypto exchanges and wallet providers. U.S. taxpayers also attempt to avoid U.S. tax reporting by creating entities through which they can act. To combat the potential for crypto assets to be used for tax evasion, third party information reporting is critical to help identify taxpayers and bolster voluntary tax compliance.”

However, in order to get access to that information, U.S. officials need the ability to provide the same data to other countries on their own citizens with U.S. accounts. This is part of the “tax information exchange agreements,” the publication conveyed.

This effort to impose more rules on crypto transactions followed the extensive lobbying to limit the definition of a broker in the $1.2 trillion infrastructure bill which the Senate recently passed. Following backlash from lawmakers and the crypto community, an official with the Treasury Department assured that even without an amendment, non-brokers, such as miners and software developers, will not be targeted.

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