According to the rules published in the Federal Register on Friday, the IRS requires "DeFi brokers" to collect user transaction information.

It is reported that "DeFi brokers" will act like traditional brokers that handle securities and are required to collect information about their users' transactions and send them 1099 forms. Brokers must send these 1099 forms to customers. In addition, some "decentralized financial industry participants" must submit tax returns that disclose the "name and address of each customer." The U.S. Treasury Department pointed out that the final rule applies to "front-end service providers" that interact "directly with customers," which means entities that run the main website used to access decentralized protocols, not the protocols themselves.

According to the document, the rule is expected to take effect on or after January 1, 2027.