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The U.S. Department of Treasury has released new rules for crypto brokers. Brokers are required to comply with the new rules from January 1, 2025. The recently released rules resemble the processes for traditional investment firms. The U.S. Department of Treasury has released new rules for cryptocurrency brokers. The new rules cover tax filing requirements for digital asset brokers, beginning with transactions happening next year. Notably, the rules do not cover the activities of non-custodial crypto firms, as regulations for that category of service providers would likely come later in the year. According to reports, aspects of the recently released rules resemble the processes for traditional investment firms, such as filling the Form 1099-DA. However, the crypto firms would be required to keep tabs on customers’ tokens from the beginning of 2026. The Internal Revenue Service (IRS) will not call for reporting on most routine stablecoin sales. It has also put an annual threshold on NFT proceeds before reporting. With the new tax regime, the IRS requires trading platforms, hosted wallet services, and digital asset kiosks to report asset movements and gains of their customers. While the IRS currently focuses on custodial platforms like Coinbase and Kraken, it is crucial to note that the reprieve for non-custodial firms is temporary.  According to the agency’s report, the popular crypto platforms that handle a “substantial majority” of transactions cannot wait any longer for rules. However, it noted that some issues need more study before the rest of the industry gets its rules, assuring the remaining rules will come later this year. It is crucial to note that the agency stated the new rules will take effect from January 1, 2025, affording crypto taxpayers another filing year to figure out their 2024 returns in the interim. It gave the brokers an extra year…

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Filed under: News - @ June 30, 2024 2:28 pm