The U.S. Department of the Treasury and the Internal Revenue Service (IRS) published a final rule on Friday that requires cryptocurrency brokers to report details of digital asset transactions to the tax agency.
“The final regulations announced today will require brokers to report gross proceeds on the sale of digital assets beginning in 2026 for all sales in 2025,” the Treasury said in a June 28 press release.
“Brokers will be required to also report information on the tax basis for certain digital assets beginning in 2027 for sales in 2026.” Tax basis refers to the original purchase price of digital assets and is used to determine taxes owed following its sale.
The IRS pointed out that the new regulations were not applicable to brokers who do not take possession of the digital assets being exchanged.
These brokers are also called decentralized or non-custodial brokers.
The IRS and the Treasury intend to provide rules for these brokers in the future.