According to Cointelegraph, the U.S. Internal Revenue Service (IRS) issued final regulations requiring brokers to report digital asset transactions, including front-end platforms such as decentralized exchanges.
The new rules, which will take effect in 2027, will require brokers to disclose gross proceeds from sales of cryptocurrencies and other digital assets, as well as information about the taxpayers involved in the transactions.
The regulations state that only trading front-end service providers are considered brokers, which apply to front-end platforms that provide digital asset trading to customers.
The IRS defines DeFi front-ends as brokers, which apply to platforms that trade digital assets through smart contracts and other means.
The IRS said the new rules will increase taxpayer compliance and are expected to affect up to 2.6 million taxpayers, involving 650 to 875 DeFi brokers.