The enforcement of a requirement for brokers to report gains made by crypto investors has been postponed by the U.S.Treasury Department and the IRS.The new tax rules, incorporated into the $1 trillion infrastructure bill passed by the U.S.Congress in 2021, were to be imposed in 2023.Crypto Brokers Told to Comply With Existing Laws Until Final Regulations Are Issued The U.S.Department of the Treasury and the Internal Revenue Service (IRS) are delaying an obligation for digital asset brokers to start tracking and reporting proceeds from customer transactions.
The respective provision was introduced with the Infrastructure Investment and Jobs Act, which was signed into law in late 2021, and was scheduled to enter into force on Jan.1, 2023.The main purpose of the requirement, imposing on the crypto sector the regulations that currently apply to securities brokers, was to increase tax revenues from coin trading by revealing gains from such operations in a 1099 form.However, additional rules are needed to enforce the legislation, including defining the scope of the term “broker” — critics have pointed out that it’s currently too wide and covers entities such as miners that may not be able to comply with the regulations.On Friday, the Treasury and the IRS provided transitional guidance on the matter.The announcement stated that crypto brokers will not be expected to report additional information with respect to dispositions of digital assets until final regulations are adopted and noted: Brokers are still required to comply with existing laws and regulations.
The authorities also emphasized that the guidance applies only to returns filed by brokers while taxpayers still need to report any income received from transactions involving cryptocurrencies.“They are also required to answer the digital asset question on page 1 of either Form 1040PDF or Form 1040-SRPDF,” the notice detailed.In another announcement released on Dec.23, the IRS also said it’s delaying new rules requiring third-party settlement organizations, such as Paypal, Venmo, Cash App, and other digital wallets, to report transactions exceeding $600 until next tax year.The new minimum threshold, lowered from the previous one of more than 200 transactions per year, was enacted with the American Rescue Plan of 2021.It was initially supposed to apply to transactions that occurred in the calendar year 2022, which is now considered a “transition period.” Tags in this story Brokers, Crypto, crypto assets, crypto brokers, crypto transactions, Cryptocurrencies, Cryptocurrency, Delay, Delays, Digital Assets, IRS, Paypal, reporting, requirement, requirements, Tax, tax rules, Taxation, taxpayers, threshold, transactions, Treasury, treasury department, U.S., US, Venmo, Wallets What do you think about the tax rules delays announced by U.S.
authorities? Share your thoughts on the subject in the comments section below.Lubomir Tassev Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.Image Credits: Shutterstock, Pixabay, Wiki Commons Disclaimer: This article is for informational purposes only.It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies.Bitcoin.com does not provide investment, tax, legal, or accounting advice.Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
The central bank of Portugal is now reviewing 12 requests from businesses that want to provide crypto-related services in the country.The applications are pending decision amid recent reports that some commercial banks are closing accounts of already approved operators.Binance Among Cryptocurrency Platforms Seeking Authorization in Portugal Portugal’s monetary authority is currently evaluating requests submitted by 12 entities that intend to offer Portuguese clients services for virtual assets, Dinheiro Vivo unveiled.The crypto firms need a license from Banco de Portugal (BdP) to work in the country, still considered one of Europe’s most crypto-friendly jurisdictions.
Final decisions on the applications are expected by the end of the year.That’s unless the regulator asks the companies to provide additional information, in which case the deadline could be moved to 2023, the Portugal News English-language portal reported, quoting the business news outlet.
Among the applicants to enter the Portuguese crypto market is Binance, the world’s largest cryptocurrency exchange by trade volume.The digital currency trading platform has started to recruit talent in the country, having posted six vacancies on its Portuguese page, even though it’s still waiting for a green light from the BdP.Criptoloja, Mind the Coin, Digital Luso, Utrust, and Bison Digital Assets are the five crypto brokers that are already operating in Portugal.The new requests are an indication that the nation’s crypto industry is developing and is likely to soon grow to a total of 17 registered exchanges.At the same time, crypto companies are also facing certain challenges.
A report recently revealed that major Portuguese banks are closing their accounts or refusing to open new ones, which is hindering normal business activities in the sector.
According to an article published by Jornal de Negócios and quoted by Bloomberg, the banks Caixa Geral de Depósitos, BCP, Santander, Abanca, and BiG are shutting down the accounts of four of the five digital asset managers.In a statement, the Bank of Portugal said it’s monitoring the problem but also pointed out that its competences, when it comes to crypto assets, do not extend to “areas that go beyond the prevention of money laundering and the financing of terrorism.” The financial authority elaborated: The decision to open or maintain bank accounts depends, in these cases, on the risk management policies that each banking institution intends to undertake.The situation may bring bad publicity to Portugal which had established itself as a crypto-friendly jurisdiction in the past few years.The EU member state attracted many crypto enthusiasts with its zero-percent tax on crypto gains, affordable living costs, and mild Mediterranean climate, especially during the Covid-19 pandemic.
Tags in this story accounts, authorization, Banco de Portugal, Bank of Portugal, banks, BdP, Binance, Brokers, Central Bank, Crypto, Cryptocurrencies, Cryptocurrency, Exchanges, License, Portugal, Portuguese Do you think Portuguese banks will change their attitude towards crypto businesses if Banco de Portugal approves more operators in the sector? Share your thoughts in the comments section below.Lubomir Tassev Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.
Image Credits: Shutterstock, Pixabay, Wiki Commons The government of Finland is discussing supporting Ukraine with part of the money from the liquidation of millions of dollars worth of cryptocurrency seized in crime investigations.Finnish authorities want to sell the bitcoins soon and say they couldn’t come up with a better idea for the proceeds.Finland Selects Brokers to Sell $75 Million of Confiscated Crypto Authorities in Helsinki have recently chosen two brokers to organize the sale of over €71 million ($75 million) worth of bitcoin (BTC) in the coming weeks.The country owns the coins that have been sized by Finnish Customs in the course of investigations into drug trafficking and other crimes.The agency has signed two-year contracts with Coinmotion Oy and Tesseract Group Oy and plans to sell the crypto during the spring and early summer, Bloomberg reported, quoting an emailed statement.Out of 1,981 bitcoins held by the customs office, 1,890 will be released.
Most of them have been confiscated in raids carried out before 2018.That year, the State Treasury adopted guidelines for their storage, banning the customs authority from keeping the digital money on a crypto exchange, insisting it should be stored offline.Last July, а tender was launched for brokers that can help the Finnish government turn the digital assets into fiat currency.Finnish Customs Director of Financial Management Pekka Pylkkanen said at the time that the agency wants a permanent solution for selling cryptocurrencies forfeited to the state coffers.Finish Government to Donate Over Half of Proceeds From Crypto Sale to Ukraine Finland mow intends to use a large portion of the fiat it will receive from the sale to expand its financial support for Ukraine, which was invaded by Russia in late February.The decision has already been made, the Helsingin Sanomat newspaper unveiled on Wednesday, quoting knowledgeable sources.
The government is yet to determine how much of the total will be sent to Kyiv, but in any case, the donation will represent a serious increase in Helsinki’s assistance for the Ukrainians.Since 2014, the Nordic country has granted the Eastern European nation €85 million.
In February, the Finland government approved €14 million in humanitarian and development aid to Ukraine.The Finnish government began considering using the bitcoins to fund Ukraine in early March.Sending the crypto directly was also discussed as both the United Nations Children’s Fund (Unicef) and the U.N.High Commissioner for Refugees accept crypto donations, but it was eventually decided to convert the coins.On Wednesday, Finland’s Minister of Finance Annika Saarikko confirmed the country will provide Ukraine with more than half of the money raised in the crypto sale which is expected to bring €70–80 million.“I am open to whether these tens of millions of euros would now be quickly allocated as humanitarian aid in the middle of the war or also in part for reconstruction work in due course.That day is coming too,” Saarikko stated, while also noting she couldn’t think of a better use for the bitcoin.Tags in this story aid, Bitcoin, Bitcoins, Brokers, Coins, confiscated, conflict, Crypto, Cryptocurrencies, Cryptocurrency, customs, Digital Currency, donate, Donation, finland, Finnish, invasion, Russia, russian, sale, seized, support, Ukraine, ukrainian, War What do you think of Finland’s initiative to share some of the seized cryptocurrency with Ukraine? Tell us in the comments section below.
Lubomir Tassev Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.Image Credits: Shutterstock, Pixabay, Wiki Commons Disclaimer: This article is for informational purposes only.It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies.Bitcoin.com does not provide investment, tax, legal, or accounting advice.Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.Bank of Russia Bank Of Russia Seeks To Allow Stock Exchanges To Trade Digital Assets The Central Bank of Russia has recently proposed authorizing traditional stock exchanges to operate in the digital assets market.Industry watchers say the regulator aims to provide investors with an option to trade cryptocurrencies in a controlled environment.Russian Stock Exchanges to List Digital Financial Assets, Central Bank of Russia Suggests Stock exchanges and central clearing counterparties may be allowed to facilitate the trading of digital financial assets (DFAs), a collective term encompassing cryptocurrencies and tokens under current Russian law.
The proposal was put forward by the Central Bank of Russia (CBR) at a meeting with exchanges, brokers, and information system operators, a group of entities to which crypto platforms pertain.Representatives of the Moscow Exchange, SPB Exchange, major brokers, and information system operators that have the right to issue digital financial assets met with Bank of Russia officials behind closed doors on Tuesday, the Kommersant reported.The discussions were focused on the new plan to organize the trading of DFAs and utilitarian digital rights (UDRs) drafted by the CBR.Some crypto-related activities in Russia were regulated with the law “On Digital Financial Assets,” which went into force in January 2021, including issuance of digital coins (digital financial assets) and fundraising through tokens (digital rights).
However, other operations such as mining and trading, as well as the circulation of cryptocurrencies, remained unregulated.A new law “On Digital Currency,” authored by the finance ministry, aims to change that.A source from Russia’s financial sector, who took part in the meeting, told the business daily that the exchanges and the brokers supported the idea to trade digital assets, which would expand the array of financial instruments available to them.At the same time, the information system operators were skeptical about the proposal.
They fear that admitting stock exchanges into this market will jeopardize the business of digital asset platforms which have not had enough time to develop yet.Their representatives also warn about various challenges, including those related to the implementation of blockchain technologies and the slower pace of operation of traditional exchange platforms.On the other hand, officials from the Moscow Exchange welcomed the initiative, stating they were ready to discuss it further.“The concept involves the use of existing exchange and settlement infrastructures.
This will contribute to the concentration of liquidity, which has been confirmed by the global practice of secondary circulation of both fiat and digital assets,” they noted during the talks.
According to Pavel Utkin, a lead lawyer at Parthenon United Legal Center, Bank of Russia seeks to gain control over the circulation of DFAs and turn their trading into something similar to the regular stock market.“Since the regulator has lost the battle with the Ministry of Finance to block the circulation of cryptocurrencies in the country, it is necessary to create a platform that will make it possible to control the circulation of these assets,” the expert elaborated.Tags in this story Bank of Russia, Brokers, CBR, Central Bank, Coins, concept, Crypto, crypto trading, Cryptocurrencies, Cryptocurrency, Digital Assets, Exchanges, financial assets, moscow exchange, plan, Regulations, rules, Russia, russian, stock exchanges, Tokens, trading Do you think the Central Bank of Russia will be able to establish control over crypto trading in the country? Share your expectations in the comments section below.Lubomir Tassev Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.Image Credits: Shutterstock, Pixabay, Wiki Commons Disclaimer: This article is for informational purposes only.
It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies.
Bitcoin.com does not provide investment, tax, legal, or accounting advice.Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.Top posts 70 EH/s2 hours ago Bitcoin Hashrate Slides As Texas Miners Curtail Hashpower To Bolster The Grid Bitcoin’s total hashrate tapped a low of 170 exahash per second (EH/s) on Dec.25, as reports noted that bitcoin…
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