Starting in 2026, crypto platforms will be required to report transactions to the Internal Revenue Service (IRS), following new regulations finalized by the IRS and U.S. Department of Treasury.
Under these regulations, which are part of the Biden Administration’s Infrastructure Investment and Jobs Act, gains from selling crypto and other digital assets will be taxable. The IRS aims to standardize how these gains are reported, with crypto platforms mandated to provide a standard 1099 form, similar to those issued by banks and traditional brokerages, starting from transactions in 2025.
The move is intended to simplify tax payments on crypto and enhance detection of tax evasion related to digital assets.
“We need to make sure digital assets are not used to hide taxable income, and these final regulations will improve detection of noncompliance in the high-risk space of digital assets,” said IRS Commissioner Danny Werfel.
However, decentralized platforms that do not hold assets themselves will be exempt from these reporting requirements, a decision praised by industry groups like the Blockchain Association.
The Treasury Department and IRS have indicated that decentralized brokers will be addressed under a separate set of regulations in the future.
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