March 9, 2025
"The Current State Of The IRS Broker Rule"
Editor Bitcoin Magazine, Lola L33tz
A summary of the current state of the IRS Broker Rule, declaring non-custodial front-ends for smart contracts brokers for reporting requirements.
https://www.activistpost.com/the-current-state-of-the-irs-broker-rule/ Between the holidays and New Years, the IRS used the last passing days of the Biden administration to finalize its long feared Broker Rule: a regulation requiring all cryptocurrency exchanges – custodial and non-custodial, fiat to crypto and crypto to crypto – to effectively subject their users to Know-Your-Customer (KYC) measures.
The rule establishes that custody over funds is not necessary to be deemed a broker by the IRS, obliging “DeFi front-end services” to report trading activity via the 1099 tax form to the agency. This includes any developer of “screens, buttons, forms, and other visual elements incorporated in websites, mobile device apps, and browser extensions—that users can use to trade digital assets in their unhosted wallets”.
"The Current State Of The IRS Broker Rule"
Editor Bitcoin Magazine, Lola L33tz
A summary of the current state of the IRS Broker Rule, declaring non-custodial front-ends for smart contracts brokers for reporting requirements.
https://www.activistpost.com/the-current-state-of-the-irs-broker-rule/ Between the holidays and New Years, the IRS used the last passing days of the Biden administration to finalize its long feared Broker Rule: a regulation requiring all cryptocurrency exchanges – custodial and non-custodial, fiat to crypto and crypto to crypto – to effectively subject their users to Know-Your-Customer (KYC) measures.
The rule establishes that custody over funds is not necessary to be deemed a broker by the IRS, obliging “DeFi front-end services” to report trading activity via the 1099 tax form to the agency. This includes any developer of “screens, buttons, forms, and other visual elements incorporated in websites, mobile device apps, and browser extensions—that users can use to trade digital assets in their unhosted wallets”.
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@flyingaxblade I remember when crypto was sold as an "alternative" to the government fiat currency system. Now it's just another layer of government bullshit lol
