The IRS has issued final regulations that classify decentralized finance (DeFi) front-ends as brokers, thereby extending existing reporting requirements. These new rules, set to take effect in 2027, mandate that brokers disclose gross proceeds from the sale of cryptocurrencies and digital assets, along with the identities of taxpayers involved. The regulations encompass platforms that perform intermediary functions in facilitating transactions, regardless of whether they operate through a legal entity. If a DeFi platform influences or controls the transaction process, it may fall under the definition of a broker. Overall, these regulations represent a significant shift in how digital asset transactions are reported and could impact a wide range of digital finance operations.

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