The United States reaches into foreign exchanges: Taxpayers must report "overseas account encryption assets"

The White House has released a 166-page digital asset report, which includes a mandate for U.S. citizens to declare overseas crypto assets. (Background: Exploring the new U.S. crypto asset tax regulations: content, impact, and investment strategies) (Supplementary background: How to pay taxes on investing in 'Bitcoin Spot ETF'? Pay attention to these two points) The inevitable truths for humanity are death and taxes. On July 30, the U.S. White House announced a 166-page digital asset report covering taxation, banking, stablecoins, and Decentralized Finance (DeFi). Among the highlights is the obligation for U.S. citizens to declare 'global crypto assets.' Mandatory declaration of overseas crypto assets The most noteworthy part of the report requires U.S. taxpayers to declare 'foreign digital asset accounts.' The new regulation aligns with the threshold of the Foreign Bank and Financial Accounts Report (FBAR), imposing a declaration obligation on any overseas crypto assets exceeding $10,000. The White House emphasizes that the convenience of cross-border transfers and offshore exchanges increases 'tax evasion risks,' and tax authorities must fill the gap. The IRS (IRS) has removed the 'willful non-reporting' option from Form 14457, indicating a shift in enforcement focus to 'compliance reporting.' At the same time, the U.S. will collect data starting January 1, 2026, in accordance with the OECD (OECD) crypto asset reporting framework (CARF) standards, with the first information exchange expected to be completed by 2028. Excerpt from the report: The convenience of cross-border transfers and the use of offshore exchanges gives U.S. taxpayers the opportunity to evade tax obligations. DeFi exemptions: Regulatory balance under anonymity The White House report states that the IRS and the Treasury should 'not impose new reporting requirements on DeFi transactions' when enforcing overseas crypto asset declarations. DeFi lacks centralized intermediaries or identifiable users, making tracking difficult. The report therefore grants exemptions, reflecting the Trump administration's desire not to stifle innovation or extend jurisdiction excessively over the decentralized finance that lacks identity. Implicitly, do U.S. citizens need to report taxes on cryptocurrencies 'hidden' in on-chain self-hosted wallets? It can only be said that the declarant must rely on their conscience. However, the CLAIRTY Act only exempts projects that are 'sufficiently decentralized,' and FinCEN has also been instructed to assess whether the Bank Secrecy Act needs to include a separate chapter. With the warming interaction between DeFi and TradFi, whether regulations will tighten remains to be seen. Related reports: A look at global private placement crypto funds: data overview, regulatory situation, how is taxation handled? The SEC releases new guidelines for stablecoins! 'Meeting five criteria' does not count as securities, exempting registration and declaration of transactions. 'The U.S. reaches into offshore exchanges: taxpayers must declare 'overseas account crypto assets'' This article was first published in BlockTempo, the most influential blockchain news media.