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U.S. regulator wants to force reporting on foreign cryptocurrency accounts

U.S. regulator wants to force reporting on foreign cryptocurrency accounts

The U.S. Treasury Department suggested imposing the IRS reporting requirements for cryptocurrencies on the foreign accounts possessed by citizens with more than $50,000 in assets. If adopted, the new requirements will take effect in 2023.

As reported in a paper issued by the Department of the Treasure, tax compliance and enforcement of digital assets become more and more troubling. Poor regulation allows money laundering, terrorist financing, and even bypassing sanctions, especially in Russia

Previously, the U.S. President's administration released Joe Biden's executive order on the regulation of digital assets, which outlines a whole-of-government approach to addressing the risks and potential benefits of digital assets and of the underlying technologies. Biden charged the U.S. Treasury Department and other regulators with developing recommendations to eliminate risks from the growing digital asset sector and changes in traditional financial markets. The U.S. president also instructed federal agencies to coordinate their actions in regulating cryptocurrencies.

Know your customer (KYC)

The user identification procedure is performed by various means such as sending an SMS to a mobile number, photographing the ID card, calling a cell phone, etc. KYC is mandatory for all financial institutions. Recently, state regulators started requiring KYC procedures for users of cryptocurrency exchanges as well. 

Read more: Guide to Crypto world: everything you need to know

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