CryptoTaxPrep.com Presents: Treasury Department Regulations Affecting Cryptocurrencies



Treasury Department regulations affecting cryptocurrencies held on foreign exchanges cryptocurrencies running on blockchain technology have created an entirely new way for people to make international transactions this opens up new opportunities for individuals making remittances holding currencies and foreign banks and supporting organizations overseas unfortunately however this also creates an avenue for international money laundering the funding of extremist groups and illegal activity transacted online because Bitcoin and other cryptocurrencies are commonly held on exchanges based outside the US crypto currency accountants have started to advise their clients about the regulations that may affect their wallets the trained professionals at happy tax have the skills and knowledge you need to make sure you don't run afoul of government regulations regarding foreign held currency how does the United States regulate foreign held assets in the United States people who hold funds in foreign bank accounts are subject to oversight by the Treasury Department's Financial Crimes enforcement network or FinCEN FinCEN collects and reviews information about financial transactions in an effort to prevent the type of money laundering terrorist financing and several other dangerous financial crimes while most of us have never even heard of FinCEN understanding how your wallet may be affected if you hold your cryptocurrencies in a foreign exchange is critical to your financial security failing to filing a report of foreign bank account f bar is punishable by a penalty of up to $10,000 per violation even if the omission was accidental if the agency finds the omission to be intentional these penalties jump to one hundred thousand dollars or fifty percent of the foreign held account balance whichever is greater do I need to report my cryptocurrency to FinCEN an F bar must be filed if the aggregate balance in all covered foreign accounts exceeds $10,000 while there has been some unofficial guidance indicating that virtual currencies will not be subject to f bar reporting for the current tax year the penalties for even accidental non-compliance are extremely high as a result many investors prefer to err on the side of caution in the ever-changing landscape of cryptocurrency accounting an accountant who is specially trained in virtual currency tax compliance can be extremely valuable to your financial future the friendly qualified cryptocurrency accountants at happy tax stay up to date with the rules and regulations affecting virtual currency investments if you hold mine or transact in cryptocurrencies you should consult with a tax professional to avoid the potentially costly mistake of failing to abide by FinCEN rules

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