According to the director of the IRS’s cybercrime unit, the IRS seized $1.2 billion in cryptocurrency in 2021. This amount is considerably greater than what has been seized in past years.
According to CNBC, the US government has a large stockpile of cryptocurrency. According to the publication, the government has been intensifying its surveillance of cryptocurrencies and, as a result, confiscating more of them. The IRS revealed earlier this year that it has seized $3.5 billion in the fiscal year 2021.
According to reports, the US government has seized 170,000% more cryptocurrency this year than it did in 2019. Jarod Koopman, director of the Internal Revenue Service’s cybercrime unit, told CNBC:
“In fiscal year 2019, we had about $700,000 worth of crypto seizures. In 2020, it was up to $137 million. And so far in 2021, we’re at $1.2 billion.”
In the past, the government has auctioned off bitcoins, frequently at significantly devalued rates. Its next auction will feature the sale of $56 million in cryptocurrency connected to the BitConnect lawsuit. However, in this case, the monies would be utilized to compensate victims of the tragedy.
The increase in crypto-related confiscations is massive, but somewhat expected in retrospect. The cryptocurrency market has grown in popularity in recent years, as have the prices of assets. That might explain why lawbreakers are increasingly utilizing cryptocurrency.
Taxation, investor protection, and stablecoin regulation are among the weak spots of cryptocurrency. The IRS, in particular, has worked hard to incorporate crypto-related explanations into the 1040 tax form. It is also collaborating with Taxbit to verify that merchants appropriately submit their data.
Meanwhile, the SEC is considering a comprehensive framework to improve investor protection. They have conveyed this point several times and are presently reviewing the numerous ETF applications. Although there has been considerable progress with the latter, no spot ETFs have yet been approved.