The whole merit and purpose of the cryptocurrency and the blockchain system were to have a glance at the decentralization, but the financial elements around the world are kind of flying it in the opposite direction. Traders are asked to use government-issued exchange systems to connect with the crypto sites and make purchases that literally take the air out of the decentralized element. On top of that, the regulations that are being developed and subjected to the use of cryptocurrency have led to the complete misconduct of decentralization. 

Besides current developments made by American President Joe Biden to the IRS (internal revenue service), he assigned them to come up with additional standards for the crypto market. The measures aim to close the tax gap and regulate the crypto market; one core element of this approach is that the crypto exchanges are required to report the gross receipts and the purchases. It means that the volume of the purchases made on a daily basis and the profit catered by the users or traders will be reported directly to the IRS.

President Biden has Urged for New Regulations to be Developed and Implemented

The whole crypto market is a significant indicator of tax evasion as the market approaches $2 trillion, but the tax input has been next to nothing due to the lack of regulations. Therefore, the current developments to make and implement so-called regulations will provide the government with some sort of taxes flying from the crypto market directly to the state’s treasury. At present, the very meaning of the crypto market means that people can get away with their earnings without making them tax-deductible. 

People who have done crypto-oriented business, including trading, buying, and selling the cryptocurrency around the value of $10k, should give tax to the government according to the new developments. This is a standard that already exists for cash transactions and is now on its way to become applicable for the crypto world as well in due time.