What changes does Biden's budget plan propose for crypto taxes?

3 answers

• Nov 24, 2021 · 3 years ago
  Sure! Biden's budget plan proposes to increase the tax reporting requirements for cryptocurrency transactions. Currently, the IRS treats cryptocurrencies as property, which means that capital gains tax is only triggered when you sell or exchange your crypto. However, the new proposal aims to expand the definition of a 'broker' to include anyone involved in cryptocurrency transactions, such as miners, validators, and decentralized exchanges. This means that these individuals and entities will be required to report transaction information to the IRS, similar to how traditional brokers report stock transactions. It's important to note that this proposal is still subject to approval and may undergo changes during the legislative process.
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• Nov 24, 2021 · 3 years ago
  The changes proposed in Biden's budget plan could have significant implications for the crypto industry. The increased tax reporting requirements may create additional compliance burdens for crypto businesses and individuals. It could also lead to a decrease in privacy for crypto users, as more transaction information will be shared with the IRS. On the other hand, some argue that increased regulation and tax compliance could bring more legitimacy to the crypto industry and attract institutional investors. Overall, the impact of these changes will depend on how they are implemented and enforced.
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• Nov 24, 2021 · 3 years ago
  As a representative of BYDFi, I can say that we are closely monitoring the developments related to Biden's budget plan and its potential impact on crypto taxes. While it's important to ensure tax compliance, we also believe in the importance of maintaining user privacy and fostering innovation in the crypto space. We will continue to work towards providing a secure and user-friendly platform for crypto traders and investors, while keeping up with any regulatory changes that may arise.
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