Bitcoin transactions of $ 10,000 or more must be reported in America

In America, more and more clarity on the guidelines and rules surrounding bitcoin (BTC). Bitcoiners nationwide face additional rules. Transactions of $ 10,000 or more must be reported to the country’s tax authorities. US bitcoiners will have to deal with it from 2023. reports Bloomberg.

This message is from the United States Department of the Treasury.

Start at Bitvavo and pay no trading fees for your first purchase up to € 1000

$ 10,000 transactions

This measure, like many other bills in the United States, does not come alone. It’s part of the Joe Biden government’s plan to step up tax enforcement, especially tax evasion.

It is literally said that this is a way to increase tax revenue.

This is a notification requirement for businesses that receive transactions of $ 10,000 or more in cryptocurrencies. Incidentally, a similar reporting obligation applies in the Netherlands. Not only for bitcoin companies, but also for banks and other financial institutions. It complies with the rules that also apply to cash.

The Ministry of Finance provides an explanation. This approach needs to address the motivations and opportunities for tax evasion: “ It’s about addressing the incentives and opportunities that take information outside of the reporting rules. Of course, there is also a brief mention of the possibility for criminals to use bitcoin: “Cryptocurrencies are already a big deal to watch because they facilitate illegal activity.”

In other words, understanding cash flows should be kept as simple as possible for tax authorities.

Since 2020, Americans have been asking themselves a number of questions about possible investments in bitcoin.

= https: //twitter.com/CNBC/status/1395414112830693379 “data-service =” twitter “>

Bitcoin and tax

You must also provide your bitcoin in the Netherlands. Compared to other countries, the Netherlands is relatively flexible when it comes to taxes. Small investors, in particular, notice little of the additional cost.

For the 2020 declaration, the tax authorities from the value of your assets on the reference date January 1, 2020. The Coinmarketcap site displays the value of your bitcoin or other cryptocurrency on that date.

Your bitcoin assets usually fall into box 3. It may be different if you are very active and trade a lot. Here’s what you need to know about paying taxes on Bitcoin.