Wednesday, December 8

Bill to tax cryptocurrencies and could equate miners with US stockbrokers | Bitcoin Portal

Jewel in the crown of the government of Joe Biden, the infrastructure project that will inject US$ 1.2 trillion in the United States was approved on Friday night (6) in the United States Congress.

For the crypto universe, a small part of the project has caused great controversy. In the section where he justifies how he will pay for the investments, he predicts a return coming from taxing digital assets of US$ 28 billion – in this case, much of this is understood as originating from crypto-assets.

But more than the tax itself, what raises the greatest concern are the definitions the law makes about “digital assets” and “brokers”.

The very broad definitions of the two terms have made the community fear that miners, developers and validators of cryptocurrency transactions will be classified as traditional brokers.

Digital Assets

Under the law they are “except as defined by the Secretary, the term digital asset means any digital representation of value that is recorded in encrypted form in a ledger or similar technology specified by the Secretary”.

According Forbes report, experts think that definition can include loyalty cards, frequent flyer cards and even money transacted at banks.

Broker

Under the law, it is “any person who is responsible for regularly providing any service that transacts digital assets on behalf of another person”.

The industry’s fear is that this will end up embracing developers, miners and others.

prison sentence

O Coindesk portal points out that the bill could apply to a law written forty years ago that provides that anyone receiving more than $10,000 in cash must check who the person is paying, record their social security number, state the nature of the transaction, and pass all this to the government within 15 days.

Failure to comply is a crime, with a penalty of imprisonment. Some lawyers say that if this were applied to cryptoactives, it would be virtually impossible to comply with the law.

The portal recalls that the Treasury Department has not yet explained how the law should be interpreted and should publish a guide explaining how entities should act.

In an interview with portal CointelegraphAbraham Sutherland, a professor at the University of Virginia School, says the law “is bad for all users of digital assets, but it is especially bad for decentralized finance. The statute would not ban DeFi at once. Instead, it imposes reporting requirements that, given the way DeFi works, would make compliance impossible.”



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