A frenzy is coming! Hundreds of billions in crypto assets poised for “sell-off”

Opinion1mos agoUpdate 204914...
34 0

Gold Finance reports that in recent years, authorities have seized hundreds of thousands of bitcoins and other cryptocurrencies in crackdowns on cybercrime. Following legal procedures, these cryptocurrencies obtained through illegal means are set to be dealt with according to the law.

Sources reveal that various departments have long planned to orderly sell off the large amounts of confiscated cryptocurrencies through legal means. This represents a significant, unified move by the authorities to dispose of the seized digital assets.

Cryptocurrency analysts note that a one-time sale of such a large volume of cryptocurrencies is expected to impact the price trends to some extent. The batch of cryptocurrencies held by the authorities could be worth tens or even hundreds of billions, and industry insiders believe that this move will further standardize cryptocurrency regulation. Overall, this action demonstrates the determination and strength of the authorities in the field of cryptocurrency regulation and pioneers a new model for state agencies to handle seized digital assets.

Reminder: It is still uncertain whether a large-scale sell-off of BTC and other digital currencies at this juncture will cause significant selling pressure. Investing involves risks and should be approached with caution.

Source: https://www.coinlive.com/news-flash/469619

Related: The Proposed IRS Broker Reporting Rules Would Effectively Kill DeFi

Historically, brokers in the traditional finance (TradFi) sector are obligated to issue 1099 forms detailing an individual’s gains and losses, requiring knowledge of personal details for tax purposes. This model fits neatly within the TradFi framework, where transaction data is centralized. However, as we pivot to the digital asset world, this model becomes increasingly problematic. Explanation of new 1099-DA tax form The introduction of the 1099-DA form, crypto’s equivalent to the traditional 1099, symbolizes an attempt to tether the wild expanse of crypto transactions to the IRS’s tax scaffolding. While seemingly a minor administrative update, the implications of this are far-reaching. The two overreaching proposals from the Treasury Department “Effectuate” Redefined: The term “effectuate” is expanded to include any entity that directly or indirectly facilitates digital asset transfers. This broad…

 

© Copyright Notice

Related articles

No comments

You must be logged in to leave a comment!
Login immediately
No comments...