US intends to introduce tax on cryptocurrency

The US authorities said they will soon present the rules for the taxation of transactions with cryptocurrency. These plans have frustrated traders, but the government is confident that in the long term, the new regulations can strengthen the digital money trading system.

For several years now, the US Internal Revenue Service (IRS) has been notifying Americans of the need to declare profits from cryptocurrency transactions, but many crypto investors ignore this obligation. The IRS will now make these taxes mandatory and require the disclosure of details of transactions over $10,000.

Cryptocurrency exchanges and other market participants are unhappy that the US Senate is introducing new rules without first consulting them. Traders fear that the new rules could both attract more investors and reduce the attractiveness of the cryptocurrency.

At the same time, the American authorities themselves expect that taxes on cryptocurrency transactions will bring about $28 billion to the federal budget. This amount has already become part of a new government package for $550 billion, which will be directed to the development of infrastructure.

Recall that in the United States, as in many other countries, there are still no clear legislative norms regarding the digital money market. The latest regulation came out in 2014 and it defines cryptocurrencies as assets, not currencies. At the same time, profit from operations with cryptocurrency is now classified as income from capital gains (for those who purchase goods) or business income (for miners).