Rationale Behind the Provision

The provision to report cryptocurrency transactions is seen as an effort to prevent income avoidance, use crypto data for surveillance, and generate tax revenue. These aims align with increased government control and surveillance over financial activity. Critics argue that compliance is difficult and the provision infringes on privacy rights, especially as it extends the reporting requirement to two-party transactions. Concerns are also raised about the potential for lowering the reporting threshold in the future, either through legislative reforms or inflationary adjustments.