IRS Expands Reporting Rules For Digital Asset Transactions

According to Cointelegraph, the United States Internal Revenue Service (IRS) has introduced new regulations mandating brokers to report digital asset transactions, extending existing requirements to include platforms such as decentralized exchanges (DEXs). These rules, set to take effect in 2027, will require brokers to disclose information about taxpayers involved in digital asset transactions and report their gross proceeds from crypto and other digital asset sales. Under the new regulations, DEXs could be classified as brokers if they facilitate the exchange or sale of digital assets and exert sufficient control or influence over the transaction process. This expansion of reporting requirements aims to enhance transparency and accountability in the digital asset market. In response to these regulations, the Blockchain Association and the Texas Blockchain Council have filed a lawsuit against the IRS, claiming that the rules are unconstitutional. Kristin Smith, CEO of the Blockchain Association, emphasized their commitment to supporting innovation in the crypto and DeFi sectors in the US. The organization argues that the rule violates the Administrative Procedure Act and poses a threat to the digital asset industry in the country. Meanwhile, Turkey has introduced stricter anti-money laundering (AML) regulations for crypto transactions. Under the new rules, users transacting with more than 15,000 Turkish lira (approximately $425) must share their information with the country's service providers. Transactions below this threshold will not be affected. The new regulations are scheduled to take effect on February 25, 2025. In Montenegro, the Minister of Justice, Bojan Božović, has approved the extradition of Terraform Labs co-founder Do Kwon to the United States. This decision follows the dismissal of Kwon's appeal by the country's constitutional court. The extradition marks the conclusion of a prolonged legal battle, with both US and South Korean prosecutors seeking Kwon's extradition to face charges in their jurisdictions. In Hong Kong, a bill concerning stablecoins has advanced to the Legislative Council for its first reading. The bill requires stablecoin issuers to obtain a license from Hong Kong's central bank, meeting the Hong Kong Monetary Authority's requirements. The legislation aims to regulate the issuance of stablecoins, ensuring that only licensed issuers can offer them in the Hong Kong market. The bill must pass three readings before being signed into law by the chief executive.