The US Congress passed a bill clarifying the expansion of taxation of cryptocurrencies, including in the field of control over the activities of cryptocurrency brokers.
In the draft law, the senators added a provision that equates cryptocurrency trading companies with brokers. Once the bill is signed by the US President, centralized cryptocurrency exchanges such as Coinbase will become brokers and will have to report customer transactions directly to the IRS.
Marketplaces will be required to fill out 1,099 forms revealing the names and addresses of their users. It is planned that thanks to the new reporting requirements, the authorities will be able to receive an additional $ 28 billion in taxes on cryptocurrency trading.
Cryptocurrency companies are concerned that the new definition of “broker”, with a biased interpretation, could shift to blockchain validators, cryptocurrency wallet operators and developers of decentralized applications. Given the anonymity of a significant portion of cryptocurrencies, it is impossible to comply with more stringent reporting requirements for transactions. As a result, this can lead to a slowdown in development and a complete halt of some areas of the cryptoindustry and negatively affect the cryptocurrency market as a whole.
In August, just after the US government removed miners from the bill in July, the US Senate passed an infrastructure bill without clarification on cryptocurrency brokers. After that, the regulation on cryptocurrency brokers was moved to the US House of Representatives. The US authorities did not rest on this. In September, the US Democratic Party proposed to Congress to raise tax rates for “high-income earners.” The tax hike will also affect cryptocurrency holders.
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