DeFi Is DEAD - The IRS Has Overstepped 🤬

The U.S. Treasury Department and the Internal Revenue Service (IRS) on August 25, 2023, proposed new regulations that would require certain decentralized finance (DeFi) platforms to report information about their users to the IRS. The proposed regulations are part of a broader effort by the Biden administration to crack down on tax evasion in the cryptocurrency industry.

The proposed regulations would define a "broker" in the digital asset space to include any person who "regularly provides any service effectuating transfers of digital assets on behalf of another person." This definition would encompass a wide range of DeFi platforms, including decentralized exchanges, lending protocols, and synthetic asset platforms.

Under the proposed regulations, DeFi platforms that qualify as "brokers" would be required to report information about their users to the IRS, including the name, address, and taxpayer identification number of each user, as well as the gross proceeds and gross losses from each transaction. The proposed regulations would also require DeFi platforms to report information about the digital assets that they hold on behalf of their users.

The proposed regulations are subject to public comment until October 30, 2023. If the proposed regulations are finalized, they would represent a significant expansion of the IRS's reach into the DeFi space.

✔ Want the best available aggregated market data? Join Santiment today!
https://tinyurl.com/yeytcu9e

✔ Want to follow me on twitter?
https://twitter.com/IAmCryptoClay

✔ Pick up a hardware wallet and protect your crypto assets today:
https://tinyurl.com/5rsc46z4

✔ Start trading on a reputable exchange (Coinbase) and claim $10 in Bitcoin:
https://tinyurl.com/mryd89b3

📜 Disclaimer 📜

This video does not contain any financial advice, nor should any of the content be construed as financial advice. Crypto Clay is not a licensed financial advisor. The cryptocurrency market is a volatile place. Please proceed with caution and do your own research before making any type of investment!

DeFi Is DEAD - The IRS Has Overstepped 🤬

#DeFi #crypto #cryptonews #cryptonewstoday #cryptotaxes #IRS #treasurydepartment #cryptotax