Coinciding with news that United States President Joe Biden’s proposed tax plan would require tax reporting on business transactions exceeding $10,000, the value of privacy coin Monero climbed 31% on Friday. The tax plan proposed by the current administration would require exchanges and custodians to implement tighter reporting measures to help detect tax evasion and money laundering. The news coincided with a massive jump in the price of privacy coin Monero.
US Treasury department expects crypto business to increase in the next decade.
Banks and financial institutions would also be required to report account inflow/outflow information to the Internal Revenue Service to help uncover unreported income. The Treasury Department’s agenda, which was published on Thursday, stated that cryptocurrency business activity remained relatively small but was expected to increase in the next decade. “Despite constituting a relatively small portion of business income today, cryptocurrency transactions are likely to rise in importance in the next decade, especially in the presence of a broad-based financial account reporting regime,” the report unveiled.
Monero climbed from $230 to $304 overnight.
Monero led the charts among the cryptocurrency market cap top 100 with 31% growth following the announcement. The privacy-centric coin’s price climbed from $230 to $304 overnight, adding to a now 84% rebound since Monero sank to a three-month low of $165 during Wednesday’s market crash. Supplemental technologies now exist which can anonymize the transactions of many well-known cryptocurrencies. Monero is among the few cryptocurrencies focused solely on privacy and is the largest of its kind by market cap. Since its launch in 2014, Monero has since gone on to become a currency of choice on the drug markets of the dark web, replacing more well-known coins such as Bitcoin in recent years. Monero transactions cannot be traced in the same way.