FinCen proposes a change in Foreign Bank and Financial Accounts regulations affecting cryptocurrency holdings at foreign exchanges.
The Financial Crimes Enforcement Network (FinCEN), a bureau of the US Department of the Treasury, announced that it will soon propose new regulation affecting cryptocurrency holdings at foreign exchanges.
This proposal is separate from the one FinCEN recently proposed on cryptocurrency wallets.
Currently, the report of Foreign Bank and Financial Accounts (FBAR) regulations do not define a foreign account holding virtual currency as a type of reportable account.
Virtual currency included as type of reportable account
FinCen intends to propose to amend the regulations implementing the Bank Secrecy Act (BSA) regarding reports of foreign financial accounts (FBAR) to include virtual currency as a type of reportable account.
FBAR is a form you file with your tax return if you have any foreign financial assets over 10K at any time of the year. According to the existing rules, failure to comply with the FBAR attracts various penalties, including monetary fines, and the same might be applicable for virtual currencies as well.
Need more information about the new crypto FBAR regulations?
We, the founders of Americans Overseas, were born in the Netherlands and obtained our American nationality through our (American) mother.
When we heard about the US tax system for the first time around 2013, we were in total disbelief (it can’t be true!), anger (how can they do this?), fear (am I going to get fines or pick up other problems?), and panic (what should I do?). It is (unfortunately) true that there is an additional American tax levy. But there’s no information from local government, and when approached, the consulate referred us to the IRS, and the IRS was impenetrable.
That’s why we started this initiative to help people from all over the world by providing proper information about the US tax system to avoid unnecessary panic, and offering help free of obligation and free of charge. If needed, we have a network of affordable professionals (accountants) who can help you with your tax obligations.