The U.S. Internal Revenue Service (IRS) has issued final regulations requiring brokers to report digital asset transactions, bringing decentralized finance (DeFi) platforms into the existing tax framework. The new rule, set to take effect in 2027, aims to increase tax compliance among DeFi brokers and taxpayers. An estimated 650 to 875 DeFi brokers and 2.6 million taxpayers may be affected.
Key Provisions of the Regulation
The new rule requires brokers to disclose transaction details, including gross proceeds and taxpayer information. Brokers must start collecting and reporting data in 2026 to ensure a smooth transition.
Targeted Platforms
The regulations primarily target “transaction front-end service providers,” such as decentralized exchanges (DEX) that facilitate digital asset trading. The IRS considers these platforms as intermediaries, and classifying them as brokers will help ensure tax compliance.
Implementation Timeline
* 2026: Brokers must start collecting and reporting data * 2027: The new rule takes effect
Source: M.theblockbeats.info