Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • TRADING
  • HACKING
  • SLOT
  • CASINO
  • SUBMIT
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • TRADING
  • HACKING
  • SLOT
  • CASINO
  • SUBMIT
Crypto Flexs
Home»ADOPTION NEWS»IRS finalizes controversial tax reporting rules for brokers, puts decision on DeFi on hold
ADOPTION NEWS

IRS finalizes controversial tax reporting rules for brokers, puts decision on DeFi on hold

By Crypto FlexsJune 28, 20243 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
IRS finalizes controversial tax reporting rules for brokers, puts decision on DeFi on hold
Share
Facebook Twitter LinkedIn Pinterest Email

The IRS released the latest version of its controversial “broker rule” guidance late Friday.

Tax agency discloses for the first time Newly Proposed Regulations As discussions about tax reporting requirements for cryptocurrency brokers begin in August 2023, concerns have been raised that vague language could have a detrimental effect on many parts of the cryptocurrency industry, from wallet providers to decentralized exchanges.

“Good news: They agree that custodial brokers are brokers.” Coin Center Chief Communications Officer Neeraj Agrawal said in a post on “Our concern is whether self-custodial applications (like DEXs) that are just code without a central authority can also be considered brokers.”

That means exchanges like Kraken and Coinbase will be subject to new rules that will partially take effect in 2025. However, they are subject to rules that impose privacy breach reporting and KYC requirements that are potentially impossible for decentralized non-custodial protocols. We’ll wait and see.

“Treasury and the IRS would benefit from additional consideration of issues related to non-custodial industry participants,” the application states.

Coin Center was one of several companies that opposed the IRS’s initial expanded definition of brokers that appeared to be tied to non-custodial, self-executing cryptocurrency platforms. only last weekThe Blockchain Association also complained that compliance costs could be prohibitive.

Building on efforts to expand IRS regulation of cryptocurrency transaction tax reporting in the Infrastructure Investment and Jobs Act beginning in 2021, the proposed regulations not only expanded the number of entities treated as brokers, but also significantly expanded the types of entities with reporting obligations. I will do it. In accordance with 1099 tax reporting requirements (and cryptocurrency-specific 1099-DA forms).

The Blockchain Association estimates in an open letter that the law would result in 8 billion 1099-DA tax forms, adding $254 billion in processing and compliance costs. This is in part because nearly all transactions involving blockchain-based assets, from NFTs to stablecoins, fall within the scope of 1099 reporting, Bitwave CEO Patrick White wrote in a recent editorial: Rebellious.

Agrawal notes that the IRS appears to have recognized this backlash and postponed a final decision on cryptocurrencies. This is a point echoed by Bill Hughes, senior counsel and director of global regulatory affairs at Consensys, who said the guidance “does not establish rules related to non-hosted wallets and related non-custodial software products.”

“They said they were still reviewing the product as a possible broker and would confirm the status later,” he added.


Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.

© 2023 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

SOL Leverage Longs Jump Ship, is it $ 200 next?

September 24, 2025

Bitcoin Treasury Firm Strive adds an industry veterans and starts a new $ 950 million capital initiative.

September 16, 2025

The best Solana depin project to form the future -Part 2

September 8, 2025
Add A Comment

Comments are closed.

Recent Posts

Futuromining Reaches $5,700 Daily Income Milestone For XRP Users

September 26, 2025

CoinFerenceX 2025 Unites Global Web3 Innovators In Singapore On September 29

September 26, 2025

Pepeto Highlights $6.8M Presale Amid Ethereum’s Price Moves And Opportunities

September 26, 2025

LYS Labs Moves Beyond Data And Aims To Become The Operating System For Automated Global Finance

September 26, 2025

Dexari Unveils $1M Cash Prize Trading Competition

September 26, 2025

How to solve the XPL perp defect

September 26, 2025

Detect the full execution bug with the induction pursing of Wake

September 25, 2025

KuCoin Appeals FINTRAC Decision, Reaffirms Commitment To Compliance

September 25, 2025

Phemex Revamps Blog To Deliver Deeper Insights And Enhanced Reader Experience

September 25, 2025

T-REX Launches Intelligence Layer To Fix Web3’s Value Distribution Problem

September 25, 2025

Are you doing a fair deal?

September 25, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

Futuromining Reaches $5,700 Daily Income Milestone For XRP Users

September 26, 2025

CoinFerenceX 2025 Unites Global Web3 Innovators In Singapore On September 29

September 26, 2025

Pepeto Highlights $6.8M Presale Amid Ethereum’s Price Moves And Opportunities

September 26, 2025
Most Popular

Top Cryptocurrency Presales to Consider Ahead of the Next Bitcoin Halving – Bitcoin Minetrix, Meme Kombat, TG.Casino, and Bitcoin ETF Token

December 1, 2023

What MiCA Really Means for Stablecoins in Europe

February 6, 2024

Market Outlook #253 – Altcoin Trader’s Blog

February 2, 2024
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.