This is the Cato Daily Podcast for Thursday, January 11th, 2024.

I'm Caleb Brown.

It's already well established that the feds want access to more of our financial data.

The new provision of federal law has attached steep fines and

jail time to anyone transacting large denominations in

cryptocuracies who then doesn't report to the IRS substantial details about that transaction within 15 days.

He does Nick Anthony details what's at work.

The Bank Secrecy Act was originally intended to track very large movements of cash to help the feds uncover criminal activity.

The Patriot Act then added additional provisions that made it a little more complicated to make large movements of money using the banking system.

And now the Biden administration in a piece of legislation passed last year I believe 20 well we say last year it's

2024 in 2022 legislation that was passed has a provision that has just come into force relating

to the transfer of crypto. So what are the provisions here and how does this complicate the use and movement of

crypto currencies?

Well this was something that I don't think a lot of people realized was on the table, but it's what

boils down to this amendment to section 60-50I of the Internal Revenue Code that was in the Infrastructure Investment Jobs Act.

And it requires anyone who makes a transaction in the course of a business or trade of $10,000 or more in

cryptocurrency to now report that to the IRS and it's not exactly clear how they're supposed to do that, but there are very real

consequences if you fail to do that in a timely and efficient manner.

And so we're talking about somebody moving $10,000 in crypto or receiving $10,000 in

cryptocurrency.

Within 15 days, they must alert the feds and provide them information about the identities

of the people who sent it to them and potentially facing years in prison and stiff fines if they fail to do this perfectly.

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