The CEO of Coinbase, the world’s largest cryptocurrency exchange by the number of users, has come out to speak against the proposed changes to the US crypto tax framework. Brian Armstrong is definitely not happy with the proposed new regulatory changes.
In a tweet, Armstrong said that the proposed changes to the crypto tax reporting could have a deeply negative impact on the evolving and consistently expanding crypto market in the US. He also said that it could push innovative startups to move to other global destinations.
Armstrong is particularly not happy with the definition of the term broker in the new proposed tax framework and he said that it makes anyone a broker who facilitates the transfer of digital assets. Coinbase CEO is not the only one to criticize the proposition.
“This makes no sense,” Armstrong tweeted. “Smart contracts, for instance, are not companies, and cannot be modified to collect KYC info or issue 1099s. They are simply software running on the blockchain that anyone can use,” he added.
Regulatory authorities across the globe are tightening the noose around cryptocurrency payment and other services providers. The US is going strict with regulatory compliance and is coming up with a new tax framework for crypto-related investments and services.