The Biden administration has proposed requiring the collection of data on foreign cryptocurrency investors active in the U.S., aiming to bolster international cooperation to help in a broader crackdown on tax evasion.

The Treasury Department, in its "Greenbook" of revenue proposals released last Friday, proposed a requirement for cryptocurrency brokers, such as exchanges and hosted-wallet providers, to provide information to the IRS on foreign individuals indirectly holding accounts with them.

"They clearly feel that right now there's a blind spot for foreign owners," said Jorge Castro, a tax attorney at Miller & Chevalier Chartered who previously worked at the IRS and as a Democratic tax counsel on Capitol Hill. The proposal addresses "certain passive entities and their substantial foreign owners," the Treasury said.

The U.S. could then provide that information to foreign governments and, in exchange, receive information on any U.S. individuals concealing cryptocurrency assets and dodging their U.S. tax liabilities by using offshore exchanges and wallet providers.