CRYPTO CURRENCY REGULATION IN NEW INFRASTRUCTURE BILL
In the new infrastructure bill passed by congress there is a section that contains language which gives the IRS authority to tax all crypto currency brokers. Some people are complaining that this section is actually very vague because it does not specify what a broker is exactly. What this bill will do for sure is require all United States crypto exchanges like Binance, Coinbase, etc to have to fill out a 1099B for every trade and purchase done on their website. This will give the IRS access to all your information. Once again this law is for all U.S exchanges. Exchanges like Kucoin are not required to make any reports to the U.S. due to it being a foreign entity. Also inside the new infrastructure bill is a requirement for all businesses to fill out IRS form 8300 for any suspicious activity that is done by a consumer or customer. Under this rule suspicious activity would be any transaction or deposit that equals $10,000 or more. So a car dealership would have to fill out IRS form 8300 for a car purchase that equals $10,000 or more. For those who think they will just get around this by keeping their transactions at $9,999 , unfortunately the business may deem your transaction suspicious and fill out IRS form 8300 to flag your transaction or deposit. So to bring it all together and to stay on topic, all U.S crypto currency exchanges will be required to fill out this form when a transaction happens for $10,000 or more. And I would just like to add a disclaimer that this article in no way advocates or condones not paying taxes or evading the IRS. The requirements that i have discussed are set to go into effect in 2024.