New Tax Law Puts IRS in Charge of Crypto Transactions

Crypto Reporting Regulations Take Effect

• Law mandates reporting of $10,000+ crypto transactions to IRS
• Non-compliance within 15 days could result in felony charges

Impact on Crypto Community

• Concerns arise about hindrance to adoption and innovation
• $10,000 threshold may discourage use of popular coins due to reporting requirements

Legal Challenges and Lack of Clarity

• Coin Center challenges law's constitutionality in a pending lawsuit
• Lawsuit argues ambiguity creates compliance challenges for crypto users and businesses
• Lack of guidance from IRS adds to confusion surrounding crypto tax reporting

Crypto Taxation Landscape

• In the U.S., crypto assets treated as properties for tax purposes
• Capital gains or losses from crypto transactions subject to varying tax rates based on holding duration

The implementation of a new tax law requires reporting substantial crypto transactions to the IRS, raising concerns within the crypto community about potential hindrances to adoption and innovation. Legal challenges mounted by advocacy groups like Coin Center question the law's ambiguity and lack of clarity, further complicating compliance. Despite ongoing legal battles, current U.S. regulations treat crypto assets as properties, mandating tax reporting for capital gains or losses based on holding durations.