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Now it seems to become a trend where unsatisfied crypto related firms have been seen to file lawsuits against government authorities, this time Coin Center sues the US Treasury.
On Friday, the news came as a bit of a surprise, stating that a prominent crypto think tank, Coin Center, has filed a lawsuit and sued the United States Treasury Department and Internal Revenue Service. In its filed lawsuit, Coin center claimed that a required law for crypto tax reporting was washed out in the infrastructure law of last year and said it was ‘unconstitutional’.
The requirement that Coin Center mentioned as unconstitutional in its lawsuit is going to take effect in the year 2024. Under this requirement, taxpayers in the United States region who received more than $10,000 worth of cryptocurrency would need to report their Social Security numbers along with other personal information about the sender.
This provision was included in several others that were in the infrastructure bill of last year that also included a requirement of crypto tax applied to brokers that was stuck under controversy. The provision had startled a massive backlash from all over the industry, however the provision turned out to be unsuccessful ultimately.
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The lawsuit filed by Coin center stated that the mandate of reporting would make Americans using cryptocurrency share their personal details forcefully, with each other and the federal government both. It further said that senders and receivers of crypto assets under the terms outlined in the mandate would be forced to unveil their personal details including names, home addresses,social security number along with other personal identifying information.
As mentioned in the lawsuit, the concern of Coin Center is that the controversial rule would need to store sender’s information by Americans. Further, it stated that this could be continued for about a year in case transactions could be considered related in case reaching the limit ultimately to $10,00 or more. In the lawsuit filed by Coin Center, Secretary Janet Yellen from the US Treasury and Head of IRS Charles Rettig are named as accused.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
