The IRS and the Department of Justice have announced a new rule that would make it illegal for virtual currency providers to engage in any type of money laundering or terrorist financing activity.
Under the new regulations, virtual currency companies would have to report suspicious activity to the IRS and submit an online report to the Department.
The IRS has been working with virtual currency firms to get their information and help identify potential money laundering and terrorist financing risks.
The new rule applies to all virtual currency platforms, including bitcoin, the virtual currency most often used to conduct illicit transactions.
It is the latest move by the IRS to crack down on virtual currency businesses.
In December, the agency announced a $50 million settlement with BitPay for alleged financial crimes related to bitcoin.
In March, the IRS also fined Coinbase $25 million for alleged illegal activity related to its bitcoin service.