Tax laws

The crypto market is approaching $ 2 trillion, but could U.S. tax laws stop the race?

The rise of Bitcoin has stalled due to oversight of virtual currencies

The cryptocurrency industry is again in sight of a market value of $ 2 trillion, a level last seen in May, but further gains come up against a hurdle related to potential new requirements. for tax filing in the United States. The value of more than 8,800 tokens tracked by CoinGecko rose 55% to $ 1.95 trillion from a July low, helped by rallies in Bitcoin and Ether. The rise of Bitcoin has stalled due to oversight of virtual currencies in the Senate infrastructure bill, according to crypto exchange Luno.

“The Bitcoin rally has been capped due to the bill,” and it now hovers between $ 45,000 and $ 47,000, said Vijay Ayyar, Asia-Pacific manager of Luno in Singapore.

The crypto industry has failed to adjust tax reporting rules – which are expected to generate around $ 28 billion in revenue – despite heavy pressure from lobbyists, and procedural issues could hamper efforts to change the provision when the House of Representatives passes the bill. . The Bulls remain fearless, with $ 100,000 forecast for Bitcoin flying after its latest comeback.

The biggest virtual coin fell 3.2% on Thursday and rose to $ 45,200 as of 8:40 a.m. in London. Ether and the Bloomberg Galaxy Crypto Index also slipped.

“Some see regulation as an overhang,” said Esme Pau, analyst at China Tonghai Securities in Hong Kong. “My take is short term pain, long term gain. Regulation increases clarity, enforcement against violations and invites wider participation.”

Prior to the rebound of the past three weeks, the crypto industry had been plagued by a crackdown in China and concerns about the environmental impact of the energy required to create coins and process transactions.

A theft of $ 610 million from the burgeoning decentralized financial sector highlights current security risks. The hackers returned about half of the money.

(Except for the title, this story was not edited by NDTV staff and is posted from a syndicated feed.)

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