Bitcoin Pares Gains Amid U.S. Treasury Crypto Tax Crackdown By Investing.com

By Yasin Ebrahim 

Bitcoin cut some its gains Thursday as the Treasury Department said it would require that any transfer worth $10,000 or more to be reported to the Internal Revenue Service.

BTC/USD rose 6.78%, to $39,928, but had traded as high as $42,425. 

“As with cash transactions, businesses that receive cryptoassets with a fair-market value of more than $10,000 would also be reported on,” the Treasury Department said in a report on tax-enforcement proposals released Thursday.

The announcement arrived a day after billions of dollars was wiped off the total crypto market, led by a plunge in BTC to $30,261.   

The U.S. crackdown comes amid concerns cryptos are being used in criminal activity including tax evasion. 

“Cryptocurrency already poses a significant detection problem by facilitating illegal activity broadly including tax evasion,” the Treasury said.