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IRS Launches Court Action in Crackdown on Crypto Tax Evaders

The U.S. taxman is clamping down on potential tax evaders by going to court to demand information from a cryptocurrency dealer.

The post IRS Launches Court Action in Crackdown on Crypto Tax Evaders appeared first on BeInCrypto.

The U.S. taxman is clamping down on potential tax evaders by going to court to demand information from a cryptocurrency dealer.

The Internal Revenue Service (IRS) has asked federal judges to give it the authority to serve summonses on SFOX. The request also extends to M.Y. Safra Bank, a financial institution headquartered in New York.

The reason for the increased scrutiny of both entities stems from their partnership back in 2019 that allowed customers access to cash deposit accounts that were backed by the Federal Deposit Insurance Corporation (FDIC). 

The primary focus of the IRS is accounts with cryptocurrency transaction records of over $20,000 between 2016 and 2021.

Both SFOX and M.Y. Safra Bank are yet to respond to the agency, according to Bloomberg. A report claims that SFOX’s 175,000 users have made $12 billion worth of transactions.

IRS claims crypto users not paying taxes in full

The IRS has always harbored suspicions that investors in digital assets and currencies are not declaring their taxes in full.

Tracking the financial activity of traders in the circle is made difficult by the private nature of digital assets, obfuscating the identities of users.

“Transactions in cryptocurrencies have grown substantially in recent years, and the IRS is concerned that taxpayers are not properly reporting these transactions on their tax returns,” said a U.S. government attorney.

The cases are in the nature of “The Matter of the Tax Liabilities of John Does” and over the last few years, similar filings have been made against other digital asset companies like Kraken, Circle, and Coinbase.

Renewed regulatory push 

Across the board, regulators are working round the clock to clamp down on dubious cryptocurrency activity. The Securities and Exchange Commission (SEC) has disclosed that it had opened investigations in leading firms in the ecosystem while still embroiled in long-running lawsuits over the issuance of unregistered securities.

The Commodity Futures Trading Commission (CFTC) is also ramping up its efforts to regulate the industry while legislative houses are mulling over new bills.

According to the IRS rules, buying digital assets with U.S. dollars and holding them in your wallet is not subject to tax. However, the sale of the asset or placing of trades makes it taxable and traders are expected to file their taxes appropriately.

The post IRS Launches Court Action in Crackdown on Crypto Tax Evaders appeared first on BeInCrypto.

Source: Markets – BeInCrypto

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A Dozen Digital Assets Record Double-Digit Gains as Crypto Markets Begin to Heal After FTX’s Collapse

A Dozen Digital Assets Record Double-Digit Gains as Crypto Markets Begin to Heal After FTX’s CollapseAt the time of writing the global cryptocurrency market capitalization is hovering around $842 billion on Sunday, Nov. 27, 2022. Bitcoin prices consolidated since the start of the week, as seven-day stats indicate the price of bitcoin has dropped by 0.02% this week. Meanwhile, while bitcoin prices remain static, a number of alternative crypto assets […]

A Dozen Digital Assets Record Double-Digit Gains as Crypto Markets Begin to Heal After FTX’s Collapse

At the time of writing the global cryptocurrency market capitalization is hovering around $842 billion on Sunday, Nov. 27, 2022. Bitcoin prices consolidated since the start of the week, as seven-day stats indicate the price of bitcoin has dropped by 0.02% this week. Meanwhile, while bitcoin prices remain static, a number of alternative crypto assets have recorded double-digit gains this week.

Crypto Economy Hovers Above the $800 Billion Zone as a Dozen Tokens Record Double-Digit Gains

Bitcoin (BTC) on Sunday is currently trading for $16,550 per unit and prices have remained stagnant for the last seven days. The token with the second-largest market capitalization, ethereum (ETH), has managed to gain 3.45% this week climbing back above the $1,200 range.

At the time of writing (10:00 a.m. ET), the crypto economy is down 0.07%, and it is currently valued at 842 billion nominal U.S. dollars. Out of the top ten largest cryptos this week, the two leading tokens include BNB and DOGE.

A Dozen Digital Assets Record Double-Digit Gains as Crypto Markets Begin to Heal After FTX’s Collapse

BNB has increased by 16.29% against the greenback during the past week, and seven-day stats show dogecoin (DOGE) is up 25.57%. Both of these crypto assets are not the only tokens that have seen double-digit gains during the past week.

The exchange coin huobi token (HT), for instance, has increased by 55.99% this week and celo (CELO) is up 45.31%. Curve’s dao token (CRV) has jumped 35.41% higher against the U.S. dollar, and litecoin (LTC) has increased by 25.29% this week.

Apecoin (APE) managed to rise 22.55% this week, and chainlink (LINK) rose by 17.95%. Dash (DASH) is up 17.25% and convex finance (CVX) has risen by 15.25% against the greenback.

In fact, 13 different crypto assets out of the 21,863 listed on coinmarketcap.com, have increased by double digits during the last week. This week’s biggest losers, however, included chiliz (CHZ) down 24.16%, chain (XCN) which lost 16%, and algorand (ALGO) shed 12.67%.

Those were the only three crypto tokens that saw double-digit losses against the U.S. dollar during the past seven days. Presently, out of the $842 billion global cryptocurrency market capitalization, bitcoin’s (BTC) market cap dominates by 37.7%.

Ethereum (ETH), on the other hand, dominates the crypto economy by 17.6% on Nov. 27, 2022. Global trade volume is a lot less than when FTX collapsed two weeks ago, as it rose above $200 billion during multiple 24-hour periods.

Today, the crypto economy’s Global trade volume is only $36.84 billion and tether (USDT) commands $26.78 billion of the aggregate. Bitcoin’s (BTC) global trade volume today is around $19.30 billion and ETH captures $4.38 billion of Sunday’s trade volume.

What do you think about the handful of crypto tokens that have recorded double-digit gains this past week? Let us know what you think about this subject in the comments section below.

Source: Markets and Prices Archives – Bitcoin News

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