IRS requires DeFi brokers to report crypto gains

In the U.S. the Internal Revenue Service (IRS) has finalized a rule that requires DeFi brokers involved in decentralized finance (DeFi) to report gross income from digital asset sales. According to The Block, the updated rule means that DeFi brokers will be subject to the same regulations as securities brokers, and will be required to collect information about user transactions and provide users with Form 1099. Aviva Aron-Dine, Acting Assistant Secretary for Tax Policy, said that “these regulations will help ensure that all taxpayers play by the same set of rules and have access to the information they need to file their taxes accurately.” The rule is scheduled to take effect after January 1, 2027.