US Department of the Treasury clarifies that network miners and validators will not be considered as crypto brokers – DiarioBitcoin

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US Department of the Treasury clarifies that network miners and validators will not be considered as crypto brokers - DiarioBitcoin For Angel Di Matteo @shadowargel

According to the latest clarification by the Treasury Department, the definition of broker It would only cover exchanges that handle information about user transactions, which must meet the requirements indicated in the Infrastructure Law Project presented last year.

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The US Treasury Departmentthe authority responsible for issues associated with taxation and taxes in the country, indicated that people who operate as miners or validators of a network blockchain do not qualify within the definition of “brokers”, Therefore, they must not comply with the applicable regulations for this term at the time of making the corresponding declaration.

Miners, validators and those who carry out certain tasks are not Brokers

This was revealed by Treasury Department in a new update, where he clarified some existing doubts about the Draft Law of Infrastructure, in which, in addition to clarifying that miners and validators do not fall within the classification of Brokers, also that staking, wallet operators and developers blockchain are exempt from this category.

The statement in question was published last Friday, February 11, confirming the aforementioned aspects. And furthermore, Treasury Department Undersecretary Yonathan C. Davidson indicated in a public letter to Senator Rob Portman that “The auxiliary parties that cannot access useful information for the tax office do not apply for the information requirements that Brokers must contemplate.”

Let us bear in mind that the bill originally established that all those who fell under the definition of Brokers and operated with cryptocurrencies had to report transactions for USD $10,000 or more to the Internal Revenue Service (IRS) from January 2023.

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The considerations set forth in the Infrastructure Law Project At the time, they generated fears about the cryptocurrency ecosystem, precisely because of the existing ambiguity around the application of the measures, and the possibility that organizations, people and entities would find themselves covered by a definition that poses quite strict requirements in terms of tax, several of which were technically impossible to comply with precisely because they did not access the information requested for the corresponding reports.

The controversy around Infrastructure Law Project

The announcement of Infrastructure Law Project and the present irregularities also led several senators to speak out against certain considerations that affected the participants of the crypto sector.

At the time, representatives of the chamber such as Rob Portman and Patrick McHenry appealed the measures and considerations by the Treasury Department, with special emphasis on the fact that miners and validators should not be considered within the established definitions.

After the clarification, what is known is that the term broker It will only apply to cryptocurrency exchanges that have access to user transaction data.

More updates on the subject are expected soon from the Treasury Department.


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Fountain: CryptoBriefing

Angel Di Matteo version / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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