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US Establishes Parameters for Cryptocurrency Reporting Framework

Proposed regulations by the US Treasury aim to clarify the reporting responsibility for gains and losses of cryptocurrency owners.


The rules define the category of individuals considered as "brokers" who must furnish information on cryptocurrency transactions. This requirement is crucial for the US Internal Revenue Service to identify any potential cases of non-compliance.


The aim of the regulations is to ensure that only those individuals or entities with access to customer data are obligated to report, this includes those involved in enabling cryptocurrency trades. Entities like Bitcoin mining companies that do not have direct contact with customers will not be affected by these regulations.


As per the proposed regulations, brokers are required to submit information returns and provide payee statements for sale or exchange transactions affecting customers' digital assets.


Under the proposed regulations, real estate reporting individuals, who are considered brokers for reportable real estate transactions, must disclose the fair market value of digital asset consideration received by real estate sellers, in furnished payee statements and filed information returns for reportable real estate transactions. They must also furnish payee statements and file information returns for real estate purchasers who utilize digital assets for buying real estate in these transactions.


Contacts

If you require assistance in relation to the above and/or would like to discuss anything further, please do not hesitate to contact info@act.london or your usual A.C.T. contact.

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