The United States Treasury Department has proposed new rules aimed at improving tax compliance, requiring businesses to report cryptocurrency transfers worth $10,000 or more to the Internal Revenue Service (IRS).
The measure is part of a broader tax enforcement initiative aimed at closing the growing compliance gap in the world’s largest economy.
Crypto Transfers to Be Treated Like Cash
In a report released Thursday, the Treasury noted that the growing adoption of digital assets poses risks to tax enforcement efforts.
As a result, it is proposing that cryptocurrency transactions above $10,000 be treated similarly to cash transactions.
“As with cash transactions, businesses that receive crypto assets with a fair market value of more than $10,000 would also be reported on,” the report stated.
The department emphasized that while crypto currently represents a small share of total business income, its influence is expected to grow significantly in the coming decade—particularly under a robust financial reporting framework.
IRS Steps Up Crypto Oversight
This move is in line with the IRS’s ongoing efforts to bring more transparency to crypto-related transactions.
Years ago, the tax agency added a dedicated question about cryptocurrency holdings on Form 1040, the standard individual income tax return form, signaling a more aggressive approach to tracking digital asset activity.
Bitcoin Reacts to Policy News
Meanwhile, Bitcoin—often seen as a bellwether for the crypto market—fell slightly after nearing the $42,000 mark.
At the time of this report, the leading cryptocurrency was trading around $39,712, though it remained up 6.12% for the day.
