Morning Minute: The White House and IRS Target Foreign Crypto Holdings

The White House has proposed new regulations that would require U.S. taxpayers to report and pay taxes on foreign cryptocurrency accounts. This initiative mimics existing frameworks like FBAR and FATCA, intended to encompass various foreign entities such as centralized exchanges, custodians, and even potentially offshore wallet providers. The IRS aims for greater visibility over American citizens' crypto activities held abroad, especially for those not fully complying with tax obligations. Proponents argue that the new rules aim to prevent U.S. taxpayers from shifting their assets to more lenient offshore exchanges, thus encouraging domestic cryptocurrency engagement and supporting U.S. exchanges. The impact of this proposal principally affects those who utilize foreign exchanges while not fully reporting their taxable activities. The White House emphasizes that by closing these foreign loopholes, it aims to bolster the growth of digital assets in America, ensuring compliance and regulation in the domestic market.

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