Home Regulations Draconian Tax Requirements Might Hit Bitcoin (BTC) and Other Cryptocurrencies

Draconian Tax Requirements Might Hit Bitcoin (BTC) and Other Cryptocurrencies

Tax Requirements Bitcoin Cryptocurencies

Imagine if the US government did impose draconian tax requirements on internet providers and startups in 1997. Would AMZN even exist as a US company?

The whole of the cryptocurrency space is haunted with fears about taxes dawning on their head.  It is worth giving heed to the brewing fear.  The entire cryptocurrency space is rallying behind the Wyden/Lummis/Toomey amendment. They believe it protects the community of node operators who don’t have customers or access to customer information that the infrastructure bill asks them to report to.

There has been a lot of stir in the cryptocurrency community. This is just the beginning, and it is not set to stop here.  If the Bitcoin community should survive, they need to become politically smart.  This is not something that will get settled with just bills.  More bills will haunt the crypto community. And, the smart crowd of doers will have to take action.

It is a chaotic situation, and it takes determination for the community to HODL BTC, HODL ETH, and HODL to whatever cryptocurrency they are holding on to. Fast-moving developments are always happening in the cryptocurrency space, and governmental intervention will become harder and more intense than before.

Several thousands of individuals and businesses are contributing to network operations. Different from traditional financial services and Internet platforms, cryptocurrency networks are built, operated, and sustained by a community of participants.

The user base is big and passionate, and there are more than 50+ million people just in the US holding crypto assets.

Regulators, senators, and governments are scared of the growing power of the cryptocurrency industry.

Joseph Zeballos-Roig, the Congress reporter, expressed:  Sen. Pat Toomey (GOP co-sponsor w/Cynthia Lummis + Wyden) indicates few signs of progress toward a crypto compromise: “I think we have an amendment that works.”

Serious crypto discussions are underway.  The community shouts out for amendments to crypto tax enforcement.  The government is like, “Revenue is very important to me.”

Tax fears aside, when most of the senators left the chamber, Warner + Portman and Toomey + Wyden were with the staff about the Senate floor.  They did not look mad at each other, and therefore, this is considered to be a sign of progress on the crypto tax amendments.

The government will ultimately want to tax it all.  The drama is just beginning.  More bills will be designed to ignite the fury of the group of people who will be primed to be skeptical of the federal government, especially the treasury.

Analogy:  Cryptocurrencies are the future of the global economy. The infrastructure bill will essentially kill the cryptocurrency industry in the US, which will be like banning the internet in the 1990s. There might be no Amazon, Google, Netflix, Facebook, and Twitter.

 

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Maheen Hernandez

A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5

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