The US Treasury Department has proposed new tax rules for crypto exchanges, hosted wallet providers, and payment processors, requiring them to meet tax reporting obligations, while exempting miners and some decentralized finance platforms.
The U.S. Treasury Department's new proposal on digital asset taxes is facing criticism from the crypto industry, as it may capture decentralized operations that are difficult to comply with, although it may also provide a clear path for crypto investors to file their taxes.
The Blockchain Association reflects on the past five years of the crypto industry's challenges in Washington D.C. and highlights potential future areas of focus, including anti-money laundering efforts, passing crypto-related legislation, and the possibility of regulatory personnel changes.
The US government has gained a boost in its efforts to prevent illegal cryptocurrency transfers by sanctioning cryptocurrency mixers, which allow users to mix their stolen funds and make transactions more difficult to trace, representing a departure from previous strategies of dealing with cybercrime after the fact.
States are taking the lead in regulating cryptocurrency as federal policy makers struggle to pass comprehensive legislation.
Cryptocurrency faces regulatory challenges that could shape its future, but despite these challenges, the industry holds promise with developments such as increased institutional adoption, central bank digital currencies (CBDCs), DeFi innovation, interoperability, and expected regulatory clarity.
Banks will be required to disclose their cryptocurrency holdings as part of new regulations to cut contagion and prevent banking collapses partially caused by the sudden popularity of crypto, according to the Basel Committee on Banking Supervision.
The chief content officer of CoinDesk, Michael Casey, discusses the future of cryptocurrency and the challenges facing the industry, including regulation and the need for decentralized systems to protect against fraud and manipulation by centralized entities. Despite recent setbacks, Casey remains optimistic about the potential of blockchain technology and the importance of creating a safer, more decentralized financial system.
The Australian Treasury has proposed new regulations to regulate cryptocurrency exchanges under existing financial services rules, receiving praise from crypto exchanges for providing regulatory certainty and promoting industry growth and innovation. However, some express concerns about fitting the crypto industry into existing financial services regulation.
The U.S. government is increasing its scrutiny of the cryptocurrency industry following reports of Hamas receiving funding through digital currencies, prompting lawmakers to demand a plan from the White House and Treasury to prevent crypto financing of terrorism.
The US Department of the Treasury has proposed new rules that would designate foreign cryptocurrency mixers as money laundering tools and threats to national security, potentially imposing the most extensive restrictions yet on these services and making it harder for cryptocurrency holders to use them. The crackdown on cryptocurrency anonymity services comes as the Treasury cites the use of cryptocurrency by Hamas and other militant groups as a reason for the change in policy.
The IRS's proposal for implementing new reporting requirements on cryptocurrency service providers is concerning as it establishes a baseline for reporting based on the ability to collect customer information, even if there is no need to do so, further expanding the framework of financial surveillance in the U.S.
Tremendous demand for bitcoin awaits regulatory approval, with the cryptocurrency having a limited supply unlike gold, according to Paul Brody, EY's global blockchain lead.
