Biden's Financial-Reporting Obligations For Cryptocurrency Exchanges

Introduction - Biden's Tax-Compliance Agenda Includes Mandatory Reporting by Cryptocurrency Exchanges about Account Holders

In May 2021, the US Department of the Treasury released a report describing the tax-compliance initiatives forming a part of US President Joe Biden's American Families Plan. The report reveals that the Biden Administration certainly appreciates that cryptocurrency "poses a significant detection problem by facilitating illegal activity broadly including tax evasion." In response, the President's tax-compliance agenda proposes a new third-party reporting regime, which leverages the "information that financial institutions already collect to shed light on those taxpayers who misreport income derived from opaque sources."