The IRS has introduced regulations mandating brokers to report digital asset transactions, expanding previous rules to include decentralized exchanges (DEXs). Starting in 2027, brokers must disclose taxpayer information and report gross proceeds from digital asset sales. DEXs could be classified as brokers if they influence transaction processes. In reaction, the Blockchain Association and the Texas Blockchain Council have filed a lawsuit against the IRS, claiming the rules are unconstitutional and violate the Administrative Procedure Act, potentially hindering the US digital asset industry. Simultaneously, Turkey has enacted stricter crypto anti-money laundering regulations, requiring users engaging in transactions over 15,000 Turkish lira (approximately $425) to share their information. This new regulation will take effect on February 25, 2025. Additionally, Montenegro's Justice Minister has approved the extradition of Terraform Labs co-founder Do Kwon to the US following a complicated legal battle. Lastly, Hong Kong's stablecoin bill has moved to the Legislative Council for further consideration, with issuers required to obtain licenses from the central bank if the bill passes.

Source 🔗