Important warning ⚠️: This is worrying news. Although it may not be directly relevant to most cryptocurrency traders, it will have a profound impact on the liquidity of the cryptocurrency circle, especially the liquidity in the DeFi field.

Once approved, small and medium-sized altcoins may be the first to be affected, and mainstream coins will also be affected to varying degrees, especially those focusing on the on-chain ecosystem.

Recently, the final version of the crypto tax broker rules has been settled. Although there may be room for fine-tuning in the specific content, its severity cannot be underestimated. The full text is 177 pages long.

At present, the decline in Bitcoin prices may be related to this incident.

The document was jointly issued by the United States (IRS) and details the requirements for crypto asset transactions that brokers need to report. These regulations clarify the obligations of information reporting, define the scope of cryptocurrency brokers, and explain how to handle digital asset sales and transaction information.

Its purpose is to improve tax compliance and narrow the tax gap caused by unreported income through third-party reporting. The new regulations require all individuals or organizations involved in digital asset transactions, including DeFi participants, to report tax information. The definition of brokers has also been expanded to entities that provide transaction matching, market creation, order matching, custody or similar services.

The core content of the new regulations is as follows:

1. Brokers must submit reports to the IRS containing total transaction revenue and other detailed information (such as Form 1099-B).

Including total revenue from digital asset transactions. Identity information and addresses of both parties to the transaction. Transfer price and basic cost records for each transaction.

2. For DeFi protocols, the definition of "digital asset intermediary" is clarified, and the specific types of services that need to be reported are listed.

If a non-custodial wallet provider participates in the transaction process and has access to transaction information, it may be considered a broker.

3. Exceptions that do not meet the definition of "broker" are stipulated.

Validators who only verify transactions, suppliers who provide hardware or software for digital asset private key management. Other participants who are not directly involved in transaction facilitation or do not have access to transaction details.

This bill will be a major blow to the smart contract public chain

In the future, cryptocurrencies will tend to be more asset attributes

Such as BTC, LTC, BCH, etc.

Of course, there is also the Bitcoin ecosystem

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