Regulators have taken notice that anonymity, a hallmark of cryptocurrency, is an attractive means of business for hackers, tax evasion and other criminal underworld activity. While the vast majority of crypto transactions are for legal purposes, almost $350 million dollars worth went into criminal hands in 2020, a whopping four times the amount from 2019. And folks, the $350 million figure doesn’t include the crypto payment made for the recent Colonial Pipeline hack, since that happened in 2021.
Governments around the world are devising rules, regulations, and controls for the crypto market. In fact, the Treasury Department just announced that any crypto transaction of $10,000 or more, including those from crypto-asset exchange accounts or crypto payment services, must be reported to the IRS. The Treasury estimates that $600 billion dollars in unpaid tax obligations resulted from business conducted in the crypto market last year, including capital gains on crypto holdings.
As stated in the article below- ‘The crypto industry spent years fighting to break into mainstream finance, and now it’s finding out just how much success might cost.’
Will regulation hamper the appeal of cryptocurrencies or provide a framework for continued, albeit monitored, growth? Let me know your thoughts!
~ Brian Kasal- The Leadership Matrix
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