Current US crypto regulations and how it works
Previously, when everything was just beginning, there was no control over the cryptocurrency, since there was no need for it, and many people did not even know that it existed. Now everything has changed, people are increasingly starting to buy cryptocurrencies and forget about real money like the dollar, since, for example, there is no regulation in Bitcoin.
At the moment, the US government has begun a procedure to control the crypt and remove taxes. Now we are analyzing how they do it and what the future of cryptocurrencies in the USA is like.
How it all began
In 2009, Bitcoin appeared and then the first payment took place in which there were no taxes and adjustments, the USA did not even fill in about it. Every year, cryptocurrencies gained popularity because of the freedom of action, no one can control your money or ask where you got your money from. People liked it, countries began to approve the cryptocurrency in their country, exchange ATMs opened and everything was fine until the US government began to lick this.
They didn’t like how they couldn’t control the flow of money, the economy started to inflation and they had to do something about it. The US government has begun work on a taxation rule for cryptocurrency transactions or exchanges. This news began to worry many people, the state has already begun to get into crypto, which was originally created for the freedom of exchanging money, but the US government has begun to reassure people in the long term, new rules can strengthen the digital money trading system, which will only become better for users and citizens .
US residents are required to pay income tax on any profits they make from cryptocurrencies, but many crypto investors ignore this obligation and have begun to circumvent it. For several years, the US Internal Revenue Service has been notifying Americans of the need to declare profits from cryptocurrency transactions and asking people to write in questionnaires: “Do they own any of the cryptocurrencies,” but people also do not. But as of 2020, the US agency has now made it clear that controlling this (crypto) market is its top priority and taxes will become mandatory, however difficult that may be. The commission said it would require crypto brokers to disclose transactions worth more than $10,000 and declare them.
What is the reaction of citizens and users to this?
Cryptocurrency exchanges and other users who use them in the market are unhappy that the US introduces new rules without prior consultation with them or warnings, they decide how to let them go and do not think about the consequences. People who have crypto cannot predict what the consequences of the innovation will be and what their next actions will be, they don’t know what will happen tomorrow at all: “Will they even be able to log into their account and find savings there.” Rules can both attract more investors and reduce the attractiveness of cryptocurrencies by destroying the idea for which it was created.
The interest of the American authorities in transactions with cryptocurrency owners is understandable. According to analysts, if in 2010 the US government missed about $400 billion in tax revenues per year, today this amount can reach $1 trillion. Including due to tax-free income from operations with cryptocurrencies.
According to a study presented in 2020, US users earned $4.1 billion from Bitcoin transfers alone, which is much bigger than it was
Future for market regulation
All these events that take place around the cryptocurrency, smoothly lead to the preparation of a new government control, only now for cryptocurrencies. The control adopted in the United States in 2010 obliged banks around the world, under the threat of fines and even criminal prosecution, to report annually to the commission on the accounts of American citizens. New powers to control cryptocurrencies will inevitably extend to foreign individuals and companies. While crypto-entrepreneurs or people who are actively involved in the crypt do not believe in it, there is always a possibility and everyone needs to be ready for it, no matter how much we would like it.
Cryptocurrency is an exciting concept that has the potential to change global finance and add something new. In the United States or abroad, users may have to pay some currency taxes according to the laws of their state or province. The US has a highly developed economy in terms of nominal GDP and cryptocurrencies are very popular in the country as the crypto market has a lot of room for development and the US is keen to keep things running like clockwork, but there are exceptions. Some states, such as Wyoming, have exempted cryptocurrencies from property taxation. It is considered the most cryptocurrency-friendly US state. Another state in America, Colorado, has passed a law to promote blockchain for government accounting. Several other states such as Arizona, Georgia started accepting crypto exchange taxes in November 2018.
Some US states such as New Mexico and California have issued cryptocurrency investment warnings, and New York has restricted the currency.
Many large companies in the US such as Microsoft, Tesla and others have started accepting digital currencies. However, it can be said that legislation is still established in the country and many laws and regulations have been formed for virtual transactions in the country. The real overall image of the currency is still being discussed in several regions of America, but one can be sure that everything will change.
Starting with the fact that the US Securities Commission recently announced the creation of its own dollar, which will be moderated by the US, it will work like USDT, that is, the price is supported by the dollar exchange rate, but now the reserves will be owned by the US government, all taxes and transfer amounts will also be controlled by them.
So we are waiting for more, we are waiting for big changes in the crypto industry!
