It’s a quintessential snoop story. The villain in this case are artful tax dodgers who laugh in the face of the law. The law plays its part rightfully – it is agitated and set to right the wrong.
Whether it will succeed is another matter altogether. Now, the United States Internal Revenue Service (IRS) is hot on the trails of nouveaux riches who thought they can dodge the law for too long!
But paying your crypto tax is important – it is the basis of achieving a working financial system that is underpinned by the cryptocurrencies currently on the market.
Many people happy to turn a blind eye to the fact that proceedings have to be accounted for and that even droplets of revenues ought to be declared. Otherwise, Uncle Sam would come forth with all feathers quite unruffled.
So, back to the news. The US Internal Revenue Service (IRS) has now put together a team of snoops and consummate financial professionals to sort out the cryptocurrency conundrum.
Bloomberg reported that a total of ten people have been appointed to deal with the illicit dealings of self-styled rich asset managers.
As to the IRS itself, the Criminal Investigation unit’s boss, Don Fort, has said that the team will collaborate with international institutions in a bid to clamp down on companies that are not trying to stay well within the reasonable limits of legislation.
The IRS’ decision is actually quite welcomed, we at Coincomparator think. For starters, cryptocurrencies may have indeed been under a lot of legal fire, but this is all for the better.
Even though crypto owners often tout the benefits of not having any state intervene and regulate the exchange of such assets, the facts point to the opposite.
Let us examine what has been happening.
- North Korea’s repeatedly attacked South Korea exchanges and managed to syphon off millions of crypto assets. This is a complete no-no. There’s a reason why international sanctions are put in place where North Korea is concerned;
- North Korea is again suspected to have attacked Japanese exchanges as well;
- Meanwhile, a study has revealed that Bitcoin is probably one of the largest currencies out there that is currently used by all sorts of criminals. We are talking human trafficking, drug trafficking, guns and everything that has some dirt on it.
With this in mind, any future legitimacy cryptocurrencies may have will have to be regulated. Whether this is a watchdog or a central bank such as the US Federal Reserve System or the People’s Bank of China, or even the European Central Bank (ECB), we don’t know.
But in all likelihood a new bank or body will have to emerge which will be designated to exclusively control how cryptocurrencies are handled.
With this in mind, if the IRS manages to establish meaningful partnership with international institutions, it may well be so that the groundwork of something meaningful and long-lasting has been established.
The future of cryptocurrencies is definitely interesting, and it will most certainly be regulated.