The New Deal in the United States has come as a shock, and the crypto market is facing a major test!
The U.S. market has just unveiled the veil of night, and a shocking piece of news has exploded in the virtual currency market like thunder—a brand new and stringent regulation has emerged.
The core points of this new regulation are as follows:
1. Brokers must fully disclose transaction information and submit detailed reports to the IRS, covering total transaction income, identities of both parties, asset transfer prices, and base costs, which undoubtedly gives wings to tax oversight while also presenting an unprecedented regulatory challenge for traders.
2. Regarding DeFi protocols, the new regulation clearly defines the term “digital asset intermediary” and lists the types of services that need to be reported. Non-custodial wallet providers involved in the transaction process and holding information may fall under regulatory scrutiny.
3. The regulation also includes exemption clauses, granting leniency to roles such as validators and private key management providers that do not directly participate in transactions.
The regulation clearly outlines a three-layer model for the DeFi technology stack and imposes strict information reporting requirements on front-end services, providing a clear framework for DeFi regulation.
With the regulation about to take effect, the virtual currency market will face profound changes. For investors, this is both a challenge and an opportunity; how to remain calm and invest rationally amidst the torrent of regulation has become a pressing question.
An unprecedented major test has already begun, and how the future of the virtual currency market will be written remains to be seen!
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