ChainCatcher News, the U.S. Treasury Department stated on Friday that it has finalized rules requiring certain decentralized finance brokers to report total proceeds from digital asset sales. According to a statement released by the U.S. Treasury Department, the new regulations require 'DeFi brokers' to act like traditional brokers handling securities, and they are required to collect information about their users' transactions and send them 1099 forms.
Brokers must send these 1099 forms to clients, which are used to report payments that are typically not from an employer, such as income outside of wages. Now, some 'decentralized finance industry participants' must submit tax returns disclosing 'the name and address of each customer.'