Crypto Tax Reporting: Urgent New Rules for Foreign Accounts Unveiled

Key Points

1. The proposal requires U.S. taxpayers to report foreign cryptocurrency accounts exceeding a certain threshold (likely $10,000), similar to existing FBAR rules.

2. The Bank Secrecy Act (BSA) may be updated to include clearer guidelines for crypto businesses on Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) compliance.

3. Decentralized finance (DeFi) transactions are currently excluded from the proposal due to their peer-to-peer nature, with separate regulations expected in the future.

4. The proposal also suggests expedited regulatory approval for crypto banks, potentially accelerating their integration into the traditional financial system.

5. Taxpayers are advised to maintain detailed records of crypto transactions, including dates, types, quantities, USD values, and wallet addresses, to ensure compliance.