Bitcoin slumped back below $40,000 amid reports the Treasury Department wants all cryptocurrency transactions over $10,000 to be declared to the IRS
In a report issued on Thursday, the Treasury described new compliance proposals from President Joe Biden, including mandatory tax reporting for transactions of $10,000 or more for Bitcoin and its rival cryptocurrencies.
Explaining the proposal, a Treasury Department spokesman said: 'Cryptocurrency already poses a significant detection problem by facilitating illegal activity broadly including tax evasion.
'This is why the President's proposal includes additional resources for the IRS to address the growth of cryptoassets.
'Within the context of the new financial account reporting regime, cryptocurrencies and cryptoasset exchange accounts and payment service accounts that accept cryptocurrencies would be covered. Further, as with cash transactions, businesses that receive cryptoassets with a fair market value of more than $10,000 would also be reported on.'
The measure, set to take effect in 2023 if passed, would require businesses to report crypto transactions over the threshold to the IRS, as they are currently required to do with cash, in a bid to crack down on tax evasion and money laundering.
Analysts said the upheaval was far from over.
Milko Markov, an independent London-based trader, said he had been buying Ether.