The public has kept a watchful eye on bitcoin and cryptocurrency in recent months. The cause of this rekindled interest in digital currencies is the sharp rise in the value of bitcoin a few weeks ago along with an announcement by Facebook that it plans to create its own digital currency.
Earlier this month, United States President Donald Trump harshly criticized the cryptocurrency market. This criticism seemed to have no effect on the value of bitcoin or the enthusiasm of those who use the currency. The president also had harsh words for the planned Libra coin from Facebook.
The current attack against cryptocurrencies come from Steve Mnuchin, the Secretary of Treasury for the United States. Mnuchin warns investors in the coin that cryptocurrencies will be obsolete in less than ten years. The Treasury Secretary also explained that the IRS will soon crack down on crypto users who are not paying their taxes.
Mnuchin labeled the crypto market a national security issue in early July. While speaking at a press conference, Mnuchin expressed his belief that illegal activities like sex trafficking, tax evasion, cybercrimes, and others are supported by users of cryptocurrency.
The comments by Mnuchin lead many to believe the Trump Administration intends to ban the use of digital currencies. Similar attempts have been made in China, Russia, and Indonesia.
Letters from the IRS was sent to more than 10,000 American citizens who own bitcoin and are believed to owe a tax liability. Chuck Rettig, the IRS commissioner, says that data analytics will play a role in the increased attention the agency will pay to cryptocurrency.
The IRS received the list they used to contact digital currency users from Coinbase, a leading cryptocurrency exchange. The list includes people who bought or sold more than $20,000 in bitcoin or other cryptocurrencies from 2013 to 2015.
