Understanding The New IRS DeFi Broker Tax Regulations

Category: Finance

The IRS has released new tax regulations for Decentralized Finance (DeFi) brokers, primarily affecting DeFi trading platforms. The regulations require the Interface Layer of DeFi services to obtain KYC information and report transactions to the IRS, similar to centralized finance exchanges. Users will need to share KYC data and will receive tax forms that only show proceeds from digital asset sales, without cost basis information. This marks a significant shift in the DeFi industry, aiming for more accountability and transparency but also presenting challenges for platforms and users.

Keywords: DeFi, IRS regulations, tax compliance

Source: Forbes

Update At: 12/28/2024

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