The IRS has introduced a new rule requiring investors to utilize wallet-based cost tracking for crypto assets. This regulation marks a shift from prior practices where all assets could be grouped for tax calculations. Starting in 2025, each wallet must be treated as its own ledger, impacting how investors calculate their cost-basis for sold assets. As Bitcoin reaches record highs, understanding the tax implications has become increasingly important. The IRS's pursuit of tighter regulations is part of a broader global trend; other jurisdictions may adopt similar measures in the future. Countries like the UK and those in the EU have previously mimicked U.S. tax laws, so forthcoming changes are plausible. As the crypto landscape expands, staying informed about tax regulations is crucial for investors looking to navigate potential challenges in the coming years.

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