Crypto Investors Defy Regulatory Uncertainty To Profit On Right To Privacy

Forbes

PUBLISHED ON: November 10, 2021

As commerce becomes increasingly global, the financial system grows and digital assets become more ingrained in our lives than ever before, governments and regulators are pushing back with even more restrictions to maintain control over the industry. Some would argue that they have gone too far, or are fighting the wrong battles. In light of the pace of innovation, especially in the cryptocurrency space, where privacy is often mandatory, these distractions are likely to keep them playing catch up and perhaps on the wrong side of history.

In May 2021, the Treasury Department released the Biden administration’s revenue proposals for fiscal year 2022. They include a key requirement that would apply stringent reporting requirements to all business and personal accounts from financial institutions. Specifically the proposal covers, “bank, loan, and investment accounts, with the exception of accounts below a low de minimis gross flow threshold of $600 or fair market value of $600.” In other words, financial institutions will report any flows in and out of business and personal accounts of more than $600 regardless of whether they are based in fiat or cryptocurrency. Then in late October the Treasury offered an additional threshold of more than $10,000 in transfers in a given year.

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