Ethereum Millionaires and Regulators
Ethereum Millionaires Might Be Attracting Attention From Regulators. Bitcoin.com recently covered an ongoing case between the US tax agency, the IRS, and its relations with the cryptocurrency exchange Coinbase.
However, Bitcoin is not the only currency that has come to the attention of tax officials. More recently, regulators are increasingly concerned about Ethereum traders who are accumulating millions of dollars in profits this year in a pseudo-anonymous manner.
According to recent reports, some Ethereum cryptocurrency traders have started bragging online that they have earned $ 283 million by investing $ 55 million in Ethereum. Those traders of course use pseudo-anonymity, and one of them revealed his ETH address, showing the public his 413% profit accumulated this year.
“I get a lot of private messages asking me how much ether I have,” explains the Ethereum trader. “One of the interesting things about Ethereum is that all the wallets in the world are transparent and open to everyone. And these are the savings of my wallet. ”
The publication Zerohedge writes that regulators are likely watching individuals make significant gains off of Ethereum and various other cryptocurrencies. The U.S. Internal Revenue Service (IRS) has been investigating tax evaders using cryptocurrency, but just recently announced they would be focusing on looking for higher volume players.
The tax agency will seek records from Coinbase and likely many other U.S. exchanges that show “at least the equivalent of $20,000 in any one transaction type (buy, sell, send, or receive) in any one year.”
Cleaning up a system that tries to monitor pseudo-anonymous individuals who make big money with cryptocurrencies will be an important task for the IRS. Even the famous whistleblower Edward Snowden said last year that cryptocurrencies could provoke tax protests in the future.
When Ethereum traders and types of investments report earning millions on public online forums, the investigation may not be as difficult for tax authorities around the world.
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