U.S. cryptocurrency users must report transactions over $ 10,000

An amendment to the much-debated Infrastructure Act passed by the U.S. Senate last month could result in many crypto users up to 5 years in prison for obtaining digital assets).

The law requires US crypto users to report transactions over $ 10,000

US crypto users must report transactions over $ 10,000

The bill’s provision would apply to all US citizens receiving any type of digital asset that is previously free from public or congressive scrutiny.

“The proposed amendment to Section 6050I states that in many cases, ‘anyone’ who receives more than $ 10,000 in digital assets will review the sender’s personal information, including their Social Security number, and sign and sign the report within 15 days must submit to the government. Failure to comply will result in fines and possibly a crime (up to five years in prison). “ said the report.

The proposal, based on a 1984 law, was designed to prevent direct money transfers and encourage the use of financial institutions for large transactions. But regulations that were relatively clear 37 years ago are difficult to apply to digital assets, making compliance too cumbersome, POSA said.

Accordingly, cryptocurrency miners, coin creators, lenders, users of decentralized markets and applications, traders, companies and individuals are exposed to the digital assets and the recipient person or entity is unable to report the required information, according to the report writers.

Based on the analysis of the conditions, POSA concluded that all of the above groups must report transactions over $ 10,000 or face fines or imprisonment.

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