The IRS issued new regulations requiring DeFi platforms to report crypto transactions. In response, the Blockchain Association filed a lawsuit against the IRS, arguing that the rules are unconstitutional.
The United States Internal Revenue Service (IRS) issued regulations requiring brokers to report digital asset transactions, expanding on existing requirements to include platforms like decentralized exchanges (DEXs).
Once the rules take effect in 2027, brokers will be required to disclose information about taxpayers involved in digital asset transactions. The brokers will also be required to report their gross proceeds from crypto and other digital asset sales.
With the new rules, DEXs could be treated as brokers if the decentralized finance (DeFi) platform facilitates the exchange or sale of digital assets and exercises sufficient control or influence on the transaction process.
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