The US Internal Revenue Service (IRS) has issued final regulations requiring brokers to report digital asset transactions, expanding existing reporting requirements to include front-end platforms. The rules will take effect in 2027 and mandate that brokers disclose gross proceeds from sales of cryptocurrencies and other digital assets.
Starting in 2026, brokers must collect and report data on digital asset transactions. The IRS estimates that between 650 and 875 DeFi brokers will be affected by these final regulations, which are expected to impact up to 2.6 million taxpayers.
The new rules focus on front-end platforms that facilitate transactions involving digital assets for customers, such as decentralized exchanges. If a DeFi platform exercises sufficient control or influence over the transaction process, it could meet the definition of a broker under the new regulations.
According to the IRS, these final regulations will result in higher levels of taxpayer compliance by making income earned through digital asset transactions more transparent to both the IRS and taxpayers. The Treasury Department disputes claims that the rules reflect a bias against the DeFi industry, stating they have applied to brokers for over 40 years.
Source: https://cointelegraph.com/news/irs-final-regulations-digital-asset-reporting-brokers