Can the IRS Block your Crypto Wallet?
Cryptocurrency and blockchain have gained recognition in the global market thanks to its transparency and effective financial structure. But the lack of regulation is one of the major concerns that have had a negative impact on the complete ecosystem in a variety of ways.
Countries that are seen to be the hubs of cryptocurrencies are now skeptical about the exponential growth of the cryptocurrency market. Another major concern that arose due to the decentralized platforms was the perpetration of effective terrorist funding and the inclusion of the black market.
The U.S. has been among the first countries that provided cryptocurrency a safe haven to bloom. The U.S. authorities have put the IRS in charge of the system, and the agency believes crypto assets should be taxed in a manner similar to stocks or real property.
However, the IRS has not yet been successful in gaining access to crypto wallets. They are secured through a private key that acts as the ‘password’, and an individual who holds it also controls the crypto assets that are associated with the wallet. Such wallets as Crypterium have the highest level of security.
To this date, the department has been trying to set up different …