IRS To Crackdown On Crypto Traders
In what was looking to be like a green day suddenly turned red in the crypto space when the Biden Administration announced the IRS will be cracking down on cryptocurrencies.
“Cryptocurrency already poses a significant detection problem by facilitating illegal activity broadly including tax evasion,” the Treasury said.
All crypto transfers above the nominal dollar value of $10,000 will now have to be reported to the Internal Revenue Service (IRS). To make sure “investors” are abiding these new regulations the Biden administration will begin funding the IRS with additional resources including hiring over 87,000 news employees. In addition the Biden administration will begin initiating severe penalties for those who fail to report their transfers.
Retail investors were not happy with this new regulation.
This was only a matter of time and we feel more regulatory risk is on the horizon. We feel there are a significant amount of illegal activities going on in the “alt-coin” space that will face the hammer of justice in due course. The question remains: will regulatory measures work? In our opinion, no.
The Feds have tried to take down multiple black markets on the dark net. Every time one is taken down another one is built, which is harder to take down than the previous one. Decentralization is coming. And it will disrupt governments.