BlockBeats news, on December 28, reported by financefeeds, that the IRS has released final regulations requiring brokers to report digital asset transactions and including decentralized finance (DeFi) platforms within the existing tax framework.
The rule will take effect in 2027, mandating brokers to disclose transaction details, including total earnings 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 transactions, such as decentralized trading platforms (DEX) that facilitate digital asset trading. According to the IRS, classifying these platforms as brokers will help ensure tax compliance.