Cryptocurrencies: Coinbase questions the Joe Biden government’s tax collection project

Lawrence Zlatkinfiscal vice president of cryptocurrency exchange Coinbase, said that The agency’s tax proposal to regulate the cryptocurrency industry could cause “serious harm” to the ecosystem.

This was said during the letter addressed to the Internal Revenue Service (IRS) of the United States this October 12.

In the letter, The Coinbase manager believes that the project could seriously harm the entire cryptocurrency industry. causing many investors and companies to flee the United States.

In the document published by Coinbase, it reads:

We have long advocated for a tax system that treats digital assets the same way it treats assets in traditional finance. The proposed regulations, as written, would impose unprecedented, unchecked and unlimited monitoring of Americans’ daily lives. They would allow government surveillance of the decisions Americans make about their most private health care choices, or even when they buy a cup of coffee.

In relation to specific criticisms, Coinbase listed six general observations regarding the IRS proposal:

• Lack of parity with financial services
• Duplicate reporting requirement
• Invasion of privacy
• Violation of the principle of technological neutrality
• Unrealistic compliance schedules
• Little understanding of how Blockchain can ensure compliance

Coinbase’s accusations come to fruition a day after a group of senators, led by legislator Elizabeth Warren, called on the IRS and the US Department of the Treasury to speed up the implementation of new tax regulations associated with cryptocurrencies.

“While we applaud the substance of the proposed regulations and the efforts of their agencies to ensure that taxpayers continue to report crypto activity, we are deeply concerned that the final rule will not take effect until 2026,” the senators alleged.