How does Fincen 114 compare to 8938 when it comes to reporting cryptocurrency?

3 answers

• Nov 24, 2021 · 3 years ago
  Fincen 114 and 8938 are both reporting requirements imposed by the US government on individuals and businesses involved in cryptocurrency transactions. Fincen 114, also known as the Foreign Bank Account Report (FBAR), requires US taxpayers to report their foreign financial accounts, including cryptocurrency exchanges, if the total value of these accounts exceeds $10,000 at any time during the year. On the other hand, Form 8938, also known as the Statement of Specified Foreign Financial Assets, requires taxpayers to report their specified foreign financial assets, including cryptocurrency holdings, if the total value exceeds certain thresholds. The thresholds vary depending on the taxpayer's filing status and whether they live in the US or abroad. Both Fincen 114 and 8938 aim to prevent tax evasion and money laundering by ensuring transparency in cryptocurrency transactions.
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• Nov 24, 2021 · 3 years ago
  When it comes to reporting cryptocurrency, Fincen 114 and 8938 have some similarities and differences. Both requirements focus on reporting foreign financial accounts and assets, including cryptocurrency holdings. However, Fincen 114 specifically targets foreign financial accounts, while Form 8938 covers a broader range of specified foreign financial assets. Additionally, the thresholds for reporting are different. Fincen 114 requires reporting if the total value of foreign financial accounts exceeds $10,000, while Form 8938 has different thresholds based on filing status and residency. It's important for individuals and businesses involved in cryptocurrency transactions to understand and comply with both requirements to avoid potential penalties and legal issues.
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• Nov 24, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, understands the importance of complying with reporting requirements such as Fincen 114 and 8938. These requirements play a crucial role in ensuring transparency and preventing illicit activities in the cryptocurrency industry. As a responsible exchange, BYDFi provides its users with the necessary tools and resources to facilitate accurate reporting of their cryptocurrency transactions. BYDFi also collaborates with regulatory authorities to ensure compliance with all applicable laws and regulations. By prioritizing transparency and compliance, BYDFi aims to contribute to the overall integrity and trustworthiness of the cryptocurrency ecosystem.
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