Earlier today, the crypto market was once again able to notice how the US Internal Revenue Service, or IRS, finds itself putting pressure on the industry. We tell you how!
IRS wants to be the all-seeing entity in the crypto market
Yesterday, the Department of Justice published a statement in which it was reported that the IRS has obtained authorization to serve a summons from John Doe to Circle. This with the aim of obtaining all the information about the American taxpayers who traded at least $ 20,000 in crypto assets on their platforms between 2016 and 2020.
«The subpoena seeks information related to the IRS investigation of a determinable group or class of persons that the IRS has a reasonable basis to believe may have violated some provision of the internal revenue laws.»Adds the document.
And, if the evidence that the IRS wants to police the crypto market more closely, the Justice Department asked the tax regulator to issue the same request to crypto exchange Kraken. According to The Block Crypto, the court responded by asking that the request limit its scope.
It is worth explaining that a John Doe subpoena is basically a tool used by the tax regulator in investigations when it does not know the name or identification of the taxpayer. Approval by a judge occurs when there is a reasonable basis to assume that a group of people violated tax laws.
Thus, it is clear that the IRS is looking to further police the crypto market for tax purposes.
Crypto Glassnode Report: Bitcoin Hodlers Decline?
Recently Glassnode presented new research in which he highlighted continued growth in Bitcoin between one month and six months.
In this regard, the crypto firm found that the number of Bitcoin hodlers have increased by approximately 500% since October. In summary, the company’s data shows that hodlers have continued to accumulate Bitcoin throughout their bull run.
Not to mention that more and more crypto investors are moving their Bitcoin holdings to cold storage wallets and thus showing less interest in short-term trading.
Ethereum set a new all-time high
Today, the price of Ethereum (ETH) set a new all-time high above $ 2,000. In fact, at the time of writing this news, the price of Ethereum is positioned above $ 2,100, after a growth of 7.45% during the last 24 hours.
Without a doubt, the second largest crypto has experienced a busy year. In the end, it is a crypto that has been involved with the expansion of nascent markets such as DeFi and NFT tokens.
However, not everything is rosy. Crypto’s new all-time high has been accompanied by a worrying rise in the costs of using the network. During the last 9 days, the average transaction on Ethereum increased from $ 12.82 to $ 22.35, according to data from YCharts.
In a few lines …
- The Grayscale Bitcoin Trust has been trading at a discount to the leading crypto for 30 days.
- Mark Cuban assured during a podcast that he owns “60% of Bitcoin, 30% of Ethereum and 10% of the rest.”
- Enjin demonstrates its commitment to the NFT market and raises $ 18.9 million for a Polkadot-based NFT Blockchain.
- Elon Musk again triggered a Dogecoin price pump.