According to reports, the US Department of Treasury will broaden the scope of new digital currency regulations. The forthcoming budget reconciliation bill, which might include extra restrictions for bitcoin firms, is soon after the infrastructure package added with crypto taxing measures.
Roll Call announced on Monday that the Biden administration is trying to add measures to the budget bill mandating U.S. cryptocurrency businesses to submit information about their foreign customers, claiming an unknown source inside the Biden administration.
The goal of the prospective regulation, like the infrastructure bill, is to improve tax compliance and increase tax collections at the expense of the digital currency business. According to the person, the US government would then share data on foreign citizens’ digital currency-related activities with the relevant countries in order to learn more about U.S. residents’ cryptocurrency operations abroad.
This data would subsequently be utilized to boost tax compliance.
One of the initiatives proposed in Treasury’s strategic Revenue Proposals for the financial year 2022 under the Improving tax administration category is to look to the cryptocurrency industry for additional sources of revenue.
The potential data sharing clauses, along with other suggested ways to close the “tax gap” — the difference between what taxpayers should pay and what they pay — are intended to help Democrats fund their aggressive spending plan, which is anticipated to include huge social welfare and healthcare spending.