The Biden administration may enact strict tax evasion regulations targeting global cryptocurrency investors

According to Coinnounce, the U.S. Internal Revenue Service is working with top tax agencies in other countries to share information about individuals and businesses that trade with foreign cryptocurrency exchanges. In the latest development, the current U.S. government has proposed collecting data on foreign cryptocurrency investors active in cryptocurrency exchanges and cryptocurrency markets. The U.S. government seems to be planning a broader crackdown on cryptocurrency tax evaders and seeking international cooperation.

Last week, the Treasury Department released the "Green Paper" of the Revenue Proposal, requiring cryptocurrency brokers such as cryptocurrency exchanges and other wallet service providers to provide all details of foreign individuals who indirectly hold accounts. In exchange, the government is keen to cooperate with foreign governments to provide information on individuals or entities that evade tax responsibilities in their respective countries. Regulators in various countries are actively developing cryptocurrency regulations. It is reported that the IRS's criminal division is already working with counterparts in other countries such as Canada, Australia, the United Kingdom and the Netherlands.