(Natural News) As part of its recently-passed $1 trillion infrastructure bill, the Senate has included a provision that will allow the government to expand financial surveillance on cryptocurrency.
The cryptocurrency provision does several things to extend government oversight over cryptocurrencies. One of its first provisions is to extend certain bank reporting laws to crypto transactions that are over $10,000.
More importantly, the provision seeks to expand the definition of a “broker” in the Internal Revenue Code of 1986. Such an expansion will include anybody who is “responsible for and regularly providing any service effectuating transfer of digital assets” on behalf of another person.
This means that brokers that handle cryptocurrency assets have to comply with the Internal Revenue Service’s (IRS) existing reporting requirements for brokers. (Related: New infrastructure bill contains Orwellian surveillance provision targeting cryptocurrency users, spelling DOOM for the crypto markets if passed.)
The cryptocurrency provision was inserted into the infrastructure bill as a way of explaining how the Democrats plan to cover the cost of its $1 trillion plan. They argue that the improvements in tax compliance will be able to cover around $28 billion of the plan.
Making cryptocurrency brokers follow the same standards as other brokers may seem like it would address some of the problems of cryptocurrencies. The cryptocurrency provision in the bill makes it clear that there is substantial harm in what the Democrats plan to do. (Related: Investigation: Many cryptocurrencies are nothing but a massive Ponzi scheme promoted by paid “influencers.”)
This is a clear ratcheting up of financial surveillance that will require the government to keep an eye on all cryptocurrency users. The IRS will be able to get the names and addresses of people who own cryptocurrencies.
At the same time, the provisions will force the developers of cryptocurrency trading software to create cumbersome and invasive systems to spy on their users. The only alternative they have is to not offer cryptocurrency services in the United States.
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Author: Arsenio Toledo
