IRS chief Charles Rettig said on Tuesday that Congress needs
to provide clear statutory authority for the tax agency to collect information
on cryptocurrency transfers valued at over $10,000 that largely go unreported.
Rettig said before the Senate Finance Committee that
cryptocurrency market capitalization is over $2 trillion, with more than 8,600
exchanges worldwide. "By design, most crypto virtual currencies are
designed to stay off the radar screen, so we will be challenged right
now."
Earlier a spokesperson for British fund manager Ruffer
Investment Management confirmed that it exited its bitcoin bet in April with a
$1.1 billion profit amid worries over risk after quick gains in the
cryptocurrency's price.
Ruffer made its bitcoin bet in November, in what was then
one of the largest signals of rising institutional interest in the digital
currency. By mid-December it was worth around 550 million pounds ($745
million).
"Long term, we remain interested in digital assets and
the role they can play in real wealth preservation," the spokesperson
said. "In the short term, following the sharp increase in the bitcoin
price, we felt bitcoin was exhibiting more risk."
Ruffer's bitcoin profit was first reported by The Sunday
Times.
Meanwhile, MicroStrategy Inc, a major bitcoin corporate
backer, has increased the size of a junk-bond sale to help buy more bitcoin,
now targeting $500 million, Bloomberg News reported on Tuesday.
Bitcoin was last trading at $32,055.20, down 4.5% on the
day. It bottomed at $31,025, the lowest price since a shakeout on May 19
dropped it to near $30,000 for the first time since January.
The cryptocurrency has slumped by half since hitting a
record of almost $65,000 in April.
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