IRS says cryptocurrency transfers over $10K will need to be reported

Just as cryptocurrencies are seeing one the most volatile weeks in recent memory, the Internal Revenue Service wants a cut of the $2 trillion market. 

The IRS disclosed Thursday "businesses that receive crypto assets with fair market value of more than $10,000" will need to be reported. This was detailed as part of President Biden's proposed American Families Plan which also requests $80 billion in funds to modernize the IRS, which includes "hiring new specialized enforcement staff, modernizing antiquated information technology…"

The move will also crackdown on bad actors who are using virtual currencies to commit crimes. 

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"Cryptocurrency already poses a significant detection problem by facilitating illegal activity broadly including tax evasion" the plan explained. 

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Colonial Pipeline, the largest in the U.S., just paid nearly $5M in ransom after a group tied to the Darkside, a Russian hacking ring, shut down its systems, creating a gas shortage up and down the East Coast. 

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The guidance also comes as trading in the virtual currency market has exploded. Bitcoin, which touched a record $64,829, has collapsed to below the $40,000 level this week on word the Chinese plan their own crackdown. 

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SEC Chairman Gary Gensler, who assumed his position in late April, has signaled he plans some type of regulation for the market, perhaps in tandem with Congress. 

COINBASE SAYS SEC CONVERSATION ON CRYPTO REGULATION WELCOME

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Coinbase, the largest publically traded crypto exchange, said it welcomes regulation if done right.