U.S. companies require the collection of user information for purchases of goods using digital assets exceeding $10,000

ChainCatcher News, U.S. companies are required to collect user information for purchases of digital assets valued over $10,000, including user names, addresses, and identification information. This new regulation will take effect on January 1, 2024.

The U.S. Department of Justice argues that the regulation is a simple extension of Congress's authority to strengthen tax compliance. Government lawyers stated, "While our tax system is based on voluntary compliance, the authority of Congress to require disclosure of transactions has been maintained since the establishment of the modern tax system," adding that "digital assets are not special."

Previously, the cryptocurrency think tank Coin Center filed a lawsuit against the government, arguing that this regulation amounts to illegal financial surveillance. A judge recently dismissed the lawsuit, stating that it was not ripe. Coin Center has appealed this ruling.