Bitcoin [BTC] and other cryptocurrencies to come under audits by Canada Revenue Agency

The issues of regulations have been a major hurdle for the cryptocurrency market, a point that has been brought up by many proponents of the cryptosphere.

New reports have come to light suggesting that the Canada Revenue Agency [CRA] is looking into the trade of Bitcoin [BTC] and other cryptocurrencies which can be subject to audits. The users under CRA’s radar were sent detailed and comprehensive questionnaires aimed at getting complete details of each individual transaction.

The CRA is not the first body to raise concerns about such transactions as the United States Internal Revenue Service [IRS] had previously called out Coinbase on the alleged selling of large amounts of user data to other parties.

The movement to put Bitcoin and other digital assets under the umbrella of audits and other financial procedures in Canada caught the eye of many in the cryptocurrency community. The CRA stated,

“The Canada Revenue Agency (CRA) understands that a vast majority of middle-class Canadians pay their fair share, but it remains committed to ensuring that without exception, every taxpayer abides by the same tax laws. As a world-class tax administration, the CRA is also committed to adapting its administration to keep pace with evolving global services and products, and making key investments to effectively address the new ways of doing business in the global economy.”

This was followed by,

“In order to make good on these commitments, the CRA established a dedicated cryptocurrency unit in 2017 to build intelligence, and conduct audits focused on risks related to cryptocurrencies. This unit has enhanced the CRA’s ability to monitor and enforce compliance in areas of emerging risk, including the cryptocurrency space. There are currently over 60 active audits related to cryptocurrency.”

The CRA also revealed that its efforts at making the cryptocurrency space safer came from its own Underground Economy Strategy. The UES works with a mission to monitor new business models and emerging markets.

Some of the CRA’s questions included, “Do you use any cryptocurrency mixing services and tumblers?” and “Can you please provide us with the tracing history along with all the cryptocurrency addresses you mixed?”

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