Federal Reserve Chairman Jay Powell warned against “illicit conduct” related to cryptocurrency
A new proposal from the Biden administration would require cryptocurrency transfers of more than $10,000 to report to US tax authorities.
The news came in the aftermath of China’s regulatory crackdown, causing Bitcoin prices to plummet.
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The crash has hit Bitcoin under $40,000, and it has happened along with a slump in the broader crypto market.
Federal Reserve Chairman Jay Powell gave his views on the issue, saying that US authorities “have “not within the scope of traditional regulatory agreements applied to banks, investment companies and other finances.” He argued that paying innovators should be careful. Intermediaries.
He also warned that he wasted most comments from the European Central Bank earlier this week on “illegal conduct,” suggesting that cryptocurrencies could encourage them.
Biden’s proposal is part of a report by the Treasury Department, highlighting the administration’s plan to close “tax disparities” by giving more power to the Internal Revenue Service. Many of the proposals aim to extract more income from America’s wealthiest taxpayers.
Jay Powell also pushed forward with proposals by the Federal Reserve to create digital dollars managed by the US Central Bank.
“The effective functioning of our economy requires people to have faith and confidence not only in the dollar, but also in payment networks, banks and other payment service providers that allow people to flow their money daily. ” he said.
“Our focus is to ensure a secure and efficient payment system that embraces innovation while bringing wide benefits to American households and businesses.”
Powell’s comments come as well as focusing on the possibility of central bank digital currency (CBDC) being implemented around the world.
