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Bitcoin Pares Gains Amid U.S. Treasury Crypto Tax Crackdown

Published 2021-05-20, 12:44 p/m
© Reuters.

By Yasin Ebrahim 

Investing.com - Bitcoin cut some its gains Thursday as the Treasury Department said it would require that any transfer worth $10,000 or more to be reported to the Internal Revenue Service.

BTC/USD rose 6.78%, to $39,928, but had traded as high as $42,425. 

“As with cash transactions, businesses that receive cryptoassets with a fair-market value of more than $10,000 would also be reported on,” the Treasury Department said in a report on tax-enforcement proposals released Thursday.

The announcement arrived a day after billions of dollars was wiped off the total crypto market, led by a plunge in BTC to $30,261.   

The U.S. crackdown comes amid concerns cryptos are being used in criminal activity including tax evasion. 

“Cryptocurrency already poses a significant detection problem by facilitating illegal activity broadly including tax evasion,” the Treasury said.

 

 

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