BlockBeats reported on December 28 that the IRS has released final regulations requiring brokers to report digital asset transactions, incorporating decentralized finance (DeFi) platforms into the existing tax framework.
The rule will take effect in 2027 and will require brokers to disclose transaction details, including total revenue and taxpayer information. Brokers must start collecting and reporting data from 2026. The IRS estimates that between 650 to 875 DeFi brokers will be affected, potentially impacting up to 2.6 million taxpayers.
These regulations primarily target 'front-end service providers for trading', such as decentralized trading platforms (DEX) that facilitate digital asset trading. According to the IRS, these platforms act as intermediaries, and classifying them as brokers will help ensure tax compliance.