May 26, 2021 at 3:38 PM
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Last week, the Treasury Department issued a report laying out President Joe Biden’s plans for improving tax compliance. One topic the report addressed was the growing crypto economy and its potential use for tax evasion. It recommended that the IRS receive additional funding to upgrade its information technology and that all business transactions involving cryptocurrency exceeding $10,000 should be reported.
This is just a proposal and is not law. Although this can give a sneak preview of legislation yet to come.
Reporting requirements are nothing new although they have had mixed results. Most people know that banks must report transactions exceeding $10,000 with some exceptions and generally have accepted it. Some people thought they could be slick by depositing multiple $9,999 transactions to get around this law. This does not work since the law requires reporting multiple related transactions that total $10,000 or more. Not only that, these mu
Uncovering and explaining how our digital world is changing and changing us.
My first Covid-19 vaccine shot came with a dose of cryptocurrency advice. The guy administering my jab in the back room of a small clinic on Coney Island told me he was buying dogecoin, the canine-inspired meme coin whose price swings wildly in part because of Elon Musk’s tweets. He suggested I buy some, too.
We are in the age of investing by meme. Some people are tossing tons of money into a stock or a coin not because they believe there’s something significantly different about the underlying value of the asset but because it got popular on the internet, and they think it’s funny, cool, or just something to do. They buy into the hype generated on platforms like Reddit and TikTok and join in. Crypto is the epitome of all of this as well as all the disarray and confusion that entails.
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We previously wrote about the National Defense Authorization Act for Fiscal Year 2021 (the “NDAA”), which became law on January 1, 2021. The NDAA includes the Anti-Money Laundering Act of 2020 (the “AML Act”), which in turn contains significant changes to the Bank Secrecy Act (“BSA”) and other anti-money laundering (“AML”) laws. The BSA, enacted in 1970, requires financial institutions to assist the federal government in detecting and preventing money laundering and terrorism financing by meeting special program, recordkeeping, and reporting requirements.
One of the most notable reforms of the AML Act is that it revised the BSA to clearly include cryptocurrency and other digital assets within its regulatory scope. You will not find the phrases “bitcoin,” “cryptobusiness,” “virtual assets,” or “digital currency” anywhere in the AML Act; instead, the statute uses language contained in existin
Wallets allow users to send, receive, and spend cryptocurrency. This row indicates the # of wallets that have interacted with an NFT Smart Contract, including buyers, sellers, and anyone who has played a game or interacted with a project using NFTs
And that trend has continued during 2021. Indeed, one report shows that NFT sales in the first quarter of 2021 grew to more than $2 billion, over twenty times the volume of the previous quarter.
9 On one major marketplace, NFT sales grew from $8 million in January 2021, to $95 million in February, to almost $150 million in March.
10 While sales volume dropped to $94 million in April, the larger trend shows a marked increase from last year, during which the same marketplace had an average sales volume of only $1 million per month.
Dive Brief:
The Facebook-backed Diem Association is withdrawing its application for a payments system license from the Swiss Financial Markets Authority (FINMA) and will move its primary operations to the U.S. from Switzerland, it said Wednesday.
The association said its subsidiary, Diem Networks U.S., will instead register as a money services business with the Treasury Department s Financial Crimes Enforcement Network (FinCEN) and run a blockchain-based payment system that allows the real-time transfer of U.S. dollar-backed stablecoins.
La Jolla, California-based Silvergate Bank will become the exclusive issuer of the stablecoin, Diem USD, and will manage the currency reserve, the association said.