Cryptocurrencies fall on US tax reporting requirement
02:46, 16 November 2021
All top 10 cryptocurrencies barring stable coins fell in early Asia trade on Tuesday after US President Joe Biden signed a $1trn infrastructure bill containing a cryptocurrency tax reporting requirement.
The infrastructure bill includes a provision for brokers to report information on traders transacting an amount of over $10,000 to the Internal Revenue Services (IRS).
The cryptocurrency industry is worried about how the bill defines a “broker”, with many fearing that the open-ended term could include miners and node operators among others.
BTC and ETH down
“These expanded definitions aimed to increase transparency for the IRS, but ultimately run the risk of requiring network actors like node operators to report identifying information for crypto transactions that they have no way of gathering,” said Kollen Post for cryptocurrency research firm The Block.
Alt coin Polkadot (DOT) was the biggest loser among the top 10 cryptocurrencies, down 9.5% to $42.47.
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DOT top loser
Polkadot has fallen over 19% in the past one week and is about 21% away from its all-time high on $54.98 hit less than two weeks ago.
Meme coins Shiba Inu (SHIB) slipped 2.9% to $0.0000509, while rival Dogecoin (DOGE) lost 4.8% to $0.2499.
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