Biden Goes After Crypto Tax Evaders with Global Data Sharing Initiative

[Hydrogen]

The Biden administration has proposed international cooperation to clamp down on crypto tax evasion by sharing data globally.

The Biden administration is making an effort to clamp down on crypto tax evasion by asking for the collection of data on foreign cryptocurrency investors active in the U.S. The United States Treasury Department released a series of revenue proposals late last month when the suggestion was made. The effort is a bid to increase international cooperation on tax evasion related to crypto.

The guideline would require cryptocurrency brokers like exchanges and hosted wallet providers to provide information to the Internal Revenue Service (IRS). This information would be related to foreign individuals that indirectly hold accounts with said entities.

Many foreign individuals currently use platforms based in the U.S. to make their trades. Given that crypto tax laws are still very much in the early stages, there are likely many earnings going unreported. The U.S. would hand information on these purchases to foreign governments.

In return, it would receive information on U.S. citizens who could be dealing in cryptocurrencies abroad. Many Americans also use foreign exchanges and wallet providers to handle their crypto investments.

The IRS has previously made efforts to ensure tax compliance within the United States. But the new suggestion marks a significant step forward in terms of ensuring compliance. It will be interesting to see how other governments take to this idea, as they too are concerned about taxation.

Biden administration keen on crypto regulation
The Biden administration is making a concerted effort to plug any loopholes in the crypto market. Many new statements and potential regulatory changes have been suggested in the past few months. These include those related to taxation, KYC/AML, and investor protection.

Several new appointees in key positions have also made their opinions on the crypto market known. While they are not particularly welcoming of cryptocurrencies, they do acknowledge that the technology has benefits. The key focus at the moment appears to be investor protection.

Treasury Secretary Janet Yellen, SEC Chairman Gary Gensler, and OCC Acting Comptroller Michael J. Hsu have all made remarks to that end. The sudden uptick in cryptocurrency discussion, and the remarks made by officials, are a clear sign that 2021 will likely be a year of regulatory focus on cryptocurrencies.

The world at large is also very interested in seeing how the U.S. tackles regulation, which could set an example for other countries. South Korea, China, and the U.K. are all also doubling down on regulation, with similar reasons to that of the United States.

https://news.yahoo.com/biden-goes-crypto-tax-evaders-095735812.html

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Can anyone imagine a scenario where nations of the world sacrifice state sovereignty to pander to this proposal of global tax initiatives. Would every nation in the world willingly abandon their right to government themselves and bow down before the united states, Joe Biden, china or any central authority figure?

Does anyone support this as a first step towards a one world government someday becoming a reality?

I think we saw the blueprint for how this will unfold in the history of net neutrality. Many years ago John McCain proposed a bill known as the internet freedom act, which would have killed net neutrality. That bill failed. And another attempt to kill net neutrality was made. And another. Adjustments were made. Until finally they succeeded in killing net neutrality. I think these attempts at establishing global tax initiatives and perhaps a global one world government will be the same.

This first proposal made by Joe Biden will probably fail. They will make adjustments and try again.

[DapanasFruit]

This is the kind of thing we can really expect under a Democrat administration: there will be more and more regulations not really just to protect investors but mainly to extract as much tax and revenues as possible. Now, there can be a big problem when the government will extend an overreach to foreign nationals who happened to have accounts in platforms based in the USA. This can be an area of main contention and can be problematic for the said many platforms operating in the USA. I am hoping though that eventually an acceptable way and means can be achieved between many stakeholders in this emerging industry. I think from 2021 hence, regulations will be a big focus for the Biden government and there will be major changes along the way - well this can be better than a general ban like what China is implementing pushing traders and hodlers to the underground, so they can still conduct business.

[jaysabi]

Can anyone imagine a scenario where nations of the world sacrifice state sovereignty to pander to this proposal of global tax initiatives. Would every nation in the world willingly abandon their right to government themselves and bow down before the united states, Joe Biden, china or any central authority figure?

Spoken like a true tax dodger. Of course you have to misstate the facts because if you presented them accurately it would be obvious how much sense this proposal makes.  The US has proposed sharing information on foreign nationals operating in the US in exchange for foreign governments doing the same thing about US citizens operating in their own countries.  The shared goal is that the nations sharing information would allow them all to crack down on their own citizens dodging taxes through foreign crypto dealings.  It's such a no-brainer it begs the question why you're so threatened by it you have to make up fantastical stories about what it is.

Does anyone support this as a first step towards a one world government someday becoming a reality?

No, this has nothing to do with one world government and anyone continuing to spout such conspiracy theory nonsense doesn't deserve to be taken seriously.

I think we saw the blueprint for how this will unfold in the history of net neutrality. Many years ago John McCain proposed a bill known as the internet freedom act, which would have killed net neutrality. That bill failed. And another attempt to kill net neutrality was made. And another. Adjustments were made. Until finally they succeeded in killing net neutrality. I think these attempts at establishing global tax initiatives and perhaps a global one world government will be the same.

Lol, no.

[bittraffic]

Shows how desperate the US government to have money because each government will definitely ask what right do they have to get these data from them?

If the country would not comply with this Global Data Sharing Initiative and they rage this up to terrorism-related issues so they could bypass and access these data, it's another story but I really think they would do that.

[zanezane]

Shows how desperate the US government to have money because each government will definitely ask what right do they have to get these data from them?

If the country would not comply with this Global Data Sharing Initiative and they rage this up to terrorism-related issues so they could bypass and access these data, it's another story but I really think they would do that.

That's politics for you, if they can't comply with your demands, you have to be prepared for what's to come because they will go heavy on your country if you don't submit to their will. This is actually good because tax evaders are a pest in society that needs to be destroyed.

[Poker Player]

This is the kind of thing we can really expect under a Democrat administration: there will be more and more regulations not really just to protect investors but mainly to extract as much tax and revenues as possible.

In fact, that's what it all boils down to: massive spending and massive regulation. That leads to less productivity, so you collect less, and if you want to keep spending you have to print even more and/or raise taxes even more. This is nothing new. It's been going on at least since Roman times. And it has never had a good ending.

[davis196]

Why do I have the feeling that this is old news?
The idea of a global tax won't work,because many countries won't agree to raise their taxes.
The democratic administration is changing it's approach,but I'm not sure that this "global data sharing" initiative will succeed.The USA is already spying most of the world.Can't the CIA just gather all this information without any help from other countries?
I guess that the crypto tax evaders are a bigger threat for the IRS,compared to the fiat tax evaders.

[paxmao]

Can anyone imagine a scenario where nations of the world sacrifice state sovereignty to pander to this proposal of global tax initiatives. Would every nation in the world willingly abandon their right to government themselves and bow down before the united states, Joe Biden, china or any central authority figure?

...

I think that is already happening, most of the banks need licences to carry out operations with nations such as the USA and these are subject to the corresponding controls. I wonder how much of a politic stance and how much of a realistic efffort is there about the whole tax thing that is now also being heard in Europe. I really whish there is a real clampdown on the massive evaders and particularly on the companies, we all know which ones, that use complex structures to evade and avoid (thin line).

These companies are on the growth, killing smaller ones, which means that taxes are diminishing.

[dkbit98]

Does anyone support this as a first step towards a one world government someday becoming a reality?

It's not the first step but it is just one of many steps we see happening around the world.
All world is going in bad direction of globalization and centralization of power so I am not really surprised to see this news that is all leading to one global tax as a way to catch and punish anyone who wants to financially be out of this corrupt fiat system.

Why do I have the feeling that this is old news?
The idea of a global tax won't work,because many countries won't agree to raise their taxes.

You are very deluded if you think those governments are anything more than a puppets who are only good for listening orders given from their masters.
Study what happened in history and observe what is happening in the world without watching mainstream media.  

[amishmanish]

We are all citizens of our respective countries, first. Then, over the years of globalization and due to the internet, a lot of us have come together as a sort of loose collective of world-citizens.

For example, today if @Theymos would decide to give every individual on the forum some sort of role in an organization of some sort, this would span the whole globe. What I am getting to is the justification behind taxes. As individuals we pay taxes to our governments because we are taking their services of running the country and making sure that things don't devolve into anarchy. Well, to maintain law and order and such things. We delegate our right to arm and defend ourselves to the governments (Well, most do unlike the USA). This gives some justification to taxes.

Now Joe Biden maybe planning some cross -country tracking of crypto-earnings but the question is, as global citizens of the internet, why exactly do we owe taxes on crypto-earnings to the government??

I'd really like to see some viewpoints on this. Bitcoin and crypto is something that the government has played zero role in. It is those of us working behind our screens that have given value to these currencies. Now that they appreciate and people get benefited from this economy that they have created without any govt help, why does the government deserve our taxes??

I hope some of those libertarians in the USA get this idea in their heads and ask the courts to adjudicate on this. Bitcoiners and crypto-community in general doesn't owe them a penny in taxes.

[Haunebu]

One government to rule them all? Lol. That will never happen. Even though there is a central government in most countries, they usually can't do much without the support of the state governments and this is a fact.

Different religions, races etc are other factors as to why it will never happen. This is just one of those bills which will most likely fail no matter how many adjustments they make over time.

[Lucius]

Can anyone imagine a scenario where nations of the world sacrifice state sovereignty to pander to this proposal of global tax initiatives. Would every nation in the world willingly abandon their right to government themselves and bow down before the united states, Joe Biden, china or any central authority figure?

I don't know why you think this is some kind of drastic measure when it comes to cryptocurrencies, when we already have agreements between the US and a very large number of countries that share such data either automatically or on demand. Just look at how it already works and add crypto to that story - I don't see anything new or spectacular here -> With Which Foreign Countries Does the United States Share Tax Information?

I think these attempts at establishing global tax initiatives and perhaps a global one world government will be the same.

Does this global government include China, Iran and North Korea, and some other countries that do not obey the wishes of Big Brother? If you want to see how the global government works, then look at the example of the EU, where 2/3 of all decisions are made in the European Parliament, where the largest countries have the most representatives, and small countries generally just stand and watch. Definitely a bad system that would be even worse on a global level, the foundation of every country should be its sovereignty and the ability to make key decisions on its own.

[Questat]

They can do it because they are a powerful country, even the small countries that are their allies might be strict in implementing crypto taxes. I'm living in a poor country where crypto taxes are not yet strictly implemented, now, I'm afraid that soon the regulators will be strict and I have to pay taxes up to the single centavo I earned online. I'm not complaining as I know this time will come, but I'm just hoping we can delay the inevitable.

[Sterbens]

After noticing that since Biden's policy has recently been legally issued, I don't think it's any different from what Trump has been doing during his term as president. the fact is that it is, at first I thought Biden and Trump were opposites, but in fact they were the same when they took office.

[Bttzed03]

~ why exactly do we owe taxes on crypto-earnings to the government??

I'd really like to see some viewpoints on this. Bitcoin and crypto is something that the government has played zero role in. It is those of us working behind our screens that have given value to these currencies. Now that they appreciate and people get benefited from this economy that they have created without any govt help, why does the government deserve our taxes??

This is a good question. From where I am from, there is a law that income (whatever form) derived in and outside of the country are subject to tax unless it's specifically stated that it's exempt. I'd like to think that the infrastructures built by the State agencies (or private companies they partnered) that helped us set up our own accounts/equipment/machines to trade/mine crypto as reasons for this.

[jaysabi]

~ why exactly do we owe taxes on crypto-earnings to the government??

I'd really like to see some viewpoints on this. Bitcoin and crypto is something that the government has played zero role in. It is those of us working behind our screens that have given value to these currencies. Now that they appreciate and people get benefited from this economy that they have created without any govt help, why does the government deserve our taxes??

This is a good question. From where I am from, there is a law that income (whatever form) derived in and outside of the country are subject to tax unless it's specifically stated that it's exempt. I'd like to think that the infrastructures built by the State agencies (or private companies they partnered) that helped us set up our own accounts/equipment/machines to trade/mine crypto as reasons for this.

For the same reason you owe taxes on all your other earnings. You're a citizen of the state, you make use of the safety the government provides and the services they offer. If if you choose not to, you can at any time by right. It's part of the implicit social contract- to have a stable and peaceful society you need a government and first responders and a healthcare system and a judicial system, etc., and the citizens have to pay for that.

[fiulpro]

Regulation is much needed. But when these regulations go as far to sacrifice the privacy of the individuals involved we have to ask ourselves: "is the government doing what they are supposed to do ?" Yes they are supposed to hold such people accountable but at the same time they are also supposed to make such laws that are not only good for the government but also the people involved in the crypto world too. The taxes are discriminatory.
It should be taken into account and a reasonable amount should be implemented to the public otherwise they will for sure do such things.
What Biden is thinking of doing would not be implemented for sure. The government is already gaining huge taxes and sums from these things, why are they trying to make the crypto community hate them ? Make reasonable taxes then maybe those people would not hide.

[Silberman]

Can anyone imagine a scenario where nations of the world sacrifice state sovereignty to pander to this proposal of global tax initiatives. Would every nation in the world willingly abandon their right to government themselves and bow down before the united states, Joe Biden, china or any central authority figure?

Does anyone support this as a first step towards a one world government someday becoming a reality?

I think we saw the blueprint for how this will unfold in the history of net neutrality. Many years ago John McCain proposed a bill known as the internet freedom act, which would have killed net neutrality. That bill failed. And another attempt to kill net neutrality was made. And another. Adjustments were made. Until finally they succeeded in killing net neutrality. I think these attempts at establishing global tax initiatives and perhaps a global one world government will be the same.

This first proposal made by Joe Biden will probably fail. They will make adjustments and try again.

Unfortunately this is nothing new, bankers had wanted to create a US central bank for a long time and their efforts failed over and over again until they were finally successful with the Federal Reserve Act, so if this is something the powerful want they will eventually get it, the issue here is one of time, can they get this before the fiat system begins to show its incredible weakness? If the will of the people can resist this until that happens then things could sort eventually themselves out.

[Vishnu.Reang]

They can do it because they are a powerful country, even the small countries that are their allies might be strict in implementing crypto taxes. I'm living in a poor country where crypto taxes are not yet strictly implemented, now, I'm afraid that soon the regulators will be strict and I have to pay taxes up to the single centavo I earned online. I'm not complaining as I know this time will come, but I'm just hoping we can delay the inevitable.

In order to pay your taxes, first of all cryptocurrency should be legal in your country. This is one of the dilemma faced by users in countries such as India. The law states that if you are profiting from anything that is legal or illegal, you should pay the taxes. So even if you are doing something illegal and profiting out of it, you need to pay the taxes. And here it gets murky. In the tax return, you need to mention the source of your money. And how many people are willing to state that they did something illegal (i.e cryptocurrency trading) and profited out of it?

[dothebeats]

I foresee a future wherein there will be a tight sharing of information regarding tax evasion and whatnot brought about by cryptocurrencies. It's becoming the next big thing, and it would be a waste if governments cannot tax it out and add the proceeds to their vaults. Biden's move is somehow aggressive and kinda telling of how would he be running the show in regards to tax evasion cases for the next years of his term. I do not see it as something extremely wrong as they have been doing this for years now even in normal tax evasion cases, but perhaps people are just taken aback with Joe's actions as privacy is crypto's strong suit, and most of us here feel that they are somewhat crossing the line on broad daylight.