According to Cointelegraph, the Internal Revenue Service (IRS) has issued final regulations requiring brokers to report digital asset transactions, including front-end platforms such as decentralized exchanges. The new rules will take effect in 2027 and require brokers to disclose the total proceeds from the sale of cryptocurrencies and other digital assets, as well as information about the taxpayers involved in the transactions. The regulations state that only front-end service providers are considered brokers, applicable to front-end platforms that provide digital asset trading for clients. The IRS defines DeFi front-ends as brokers, applicable to platforms that facilitate digital asset trading through methods such as smart contracts. The IRS stated that the new rules will enhance taxpayer compliance, and it is expected to affect up to 2.6 million taxpayers, involving 650 to 875 DeFi brokers.