Follow Us @
US IRS requires DeFi protocols to track users
-Trending Marketing news, content marketing, latest Ways to rank your website, marketing discoveries, Local SEO, seo and social media marketing services. enjoy your stay on our website.
THE United States Internal Revenue Service (IRS) announced new rules that oblige brokers decentralized finance (DeFi) to collect and report information about digital transactionsequating them with traditional securities brokers.
The regulation, published on Friday (27), will come into force on January 1, 2027 and search increase tax transparency in the cryptocurrency market.
According to the US Treasury Department, DeFi brokers will now be responsible for:
Aviva Aron-Dine, acting assistant secretary for tax policy, highlighted that the new rules will ensure that “all taxpayers follow the same set of rules and have the information they need to file their taxes accurately.”
Impact on DeFi protocols
Regulation also affects front-end service providersi.e. entities that operate the main websites used to access decentralized protocols.
One example cited is the Uniswap Labswhich manages the main portal for the Uniswap protocol. However, the implementation raises doubtsas many DeFi protocols do not have direct intermediaries, which complicates data collection and reporting.
Industry experts have criticized the equation between DeFi and traditional brokers, pointing out challenges in setting up data collection systems on decentralized platforms.
Furthermore, groups such as Blockchain Association promised take action against the new ruleconsidering it a threat to the privacy and autonomy of the crypto sector.
Bill Hughes, senior advisor at Consensys, stated that the rule may face legal and political challenges. According to him, “a lawsuit could allege that the rule exceeds the Treasury’s authority and violates the Administrative Procedure Act.”
Hughes also highlighted the possibility of Congress reviewing regulation under the Congressional Review Act.
US IRS requires DeFi protocols to track users
Follow TODAYSGIST on Google News and receive alerts for the main trending SEO news, Ai news, latest Ways to rank your website, marketing discoveries, Local SEO and lots more!
US IRS requires DeFi protocols to track users
SHARE POST AND EARN REWARDS:
Did you like this post?!!! Join our Audience reward campaign and make money reading articles, shares, likes and comment >> Join reward Program
FIRST TIME REACTIONS:
US IRS requires DeFi protocols to track users
Be the first to leave us a comment, down the comment section. click allow to follow this topic and get firsthand daily updates.
JOIN US ON OUR SOCIAL MEDIA: << FACEBOOK >> | << WHATSAPP >> | << TELEGRAM >> | << TWITTER >
US IRS requires DeFi protocols to track users
