Cryptocurrency exchanges and payment processors in the US will be required to report information on their users' transactions to the Internal Revenue Service under a new Treasury proposal.
The rules are designed to address the tax evasion risks posed by digital assets and could raise nearly $28 billion in ten years, says the Joint Committee on Taxation.
Under the proposal, crypto brokers - centralised and decentralised exchanges, payment processors and some hosted wallets - would have to provide a new tax reporting form, called a Form 1099-DA, to help taxpayers determine if they owe taxes. The rules would cover crypto such as Bitcoin and Ether, as well as NFTs.
The form, covering information such as customers’ capital gains and losses, would be sent to both customers and the IRS. It would bring crypto in line with information reporting rules for securities and other financial instruments.
The first year that brokers would be required to report any information on sales and exchanges of digital assets is in 2026.