Cryptocurrency Q&A
Will the IRS cover decentralized crypto brokers in 2026?
Will the IRS cover decentralized crypto brokers in 2026?
emma_grayson_journalist
Sun Jul 07 2024
|
6 answers
1519
With the rapidly evolving landscape of cryptocurrency and decentralized finance, one pertinent question arises: Will the Internal Revenue Service (IRS) extend its regulatory reach to cover decentralized crypto brokers by 2026? Given the increasing popularity and complexity of decentralized exchanges and peer-to-peer trading platforms, it's crucial to understand if and how these emerging entities will be taxed or subject to compliance measures. Will the IRS adapt its current frameworks to accommodate this new frontier, or will it seek to establish entirely new regulations? As the crypto ecosystem continues to mature, clarity from tax authorities will be crucial for fostering investor confidence and encouraging further growth.
6 answers
Giulia
Tue Jul 09 2024
These platforms operate on a peer-to-peer basis, without intermediaries or centralized control, making them challenging to regulate.
Was this helpful?
62
42
Ilaria
Tue Jul 09 2024
The Treasury Department and IRS have announced their intention to address decentralized brokers through a distinct regulatory framework.
Was this helpful?
284
77
Stefano
Tue Jul 09 2024
As part of this initiative, crypto platforms are mandated to commence reporting transactions to the Internal Revenue Service in 2026.
Was this helpful?
205
74
DongdaemunTrendsetter
Tue Jul 09 2024
This move aims to bring transparency to the previously unregulated sector and ensure tax compliance.
Was this helpful?
272
38
DigitalDukedom
Tue Jul 09 2024
However, decentralized platforms that do not hold or control user funds are excluded from this regulatory scope.
Was this helpful?
335
94
Load 5 more related questions
