US President Biden has said he will make the tax system fair by having the crypto industry in his sights. Indeed, it will eliminate loopholes for crypto traders. New tax rules should help close the crypto loopholes. But what shortcomings is the president referring to? Recent statements give us the answer.
New taxes for crypto currencies
President Joe Biden has made a promise on the crypto industry ahead of his upcoming campaign. He then declared his intention to make the current tax system fair. To do so, it will close loopholes for crypto traders and impose new taxes. In a recent tweet, he said these loopholes cost the government $18 billion in lost tax revenue.
Many cryptocurrency traders have actually been able to evade taxes thanks to this loophole. In a transcript released by the White House on Wednesday, President Biden announced his decision. He will close loopholes for crypto traders and hedge fund managers. Last May, he had already shown his intention to fill the gaps in the crypto sector.
Immediate effects on the price of Bitcoin
Following President Biden’s comments, the price of Bitcoin took a hit. The price of Bitcoin (BTC) fell 1.3% to just under $30,000. Currently, Bitcoin accounts for more than half of the total crypto market. However, its price rose above $30,500.
The ups and downs experienced by the crypto industry are not about to stop. As SEC crackdowns on crypto industries continue, President Biden is also affirming his resolve. In a video posted by Sky News, he said he would not accept “to protect wealthy tax evaders and crypto traders at the expense of lunching ladies.”
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