New Tax Regulations on Decentralized Finance Platforms Expected to Take Effect in 2027

IRS Targets DeFi: New Crypto Tax Rules to Shake Decentralized Platforms by 2027

The U.S. Internal Revenue Service (IRS) has unveiled a new tax rule that will have far-reaching implications for decentralized finance (DeFi) brokers, commencing in 2027. The latest development involves the collection of user trading data, issuance of tax forms, and provision of customer information including names and addresses. This move aims to enhance transparency and potentially lead to higher compliance costs for DeFi platforms.

In a recent update, experts warn that this development may propel some smaller platforms to relocate or make significant alterations, resulting in temporary instability within the DeFi space. Consequently, this could impact both crypto investors and users of decentralized finance products alike.

According to sources, Do Kwon, co-founder of Terraform Labs, is set to be extradited to the United States following an arrest for using fake documents. The charges against Kwon are related to the collapse of his crypto project. In other news, Bitcoin continues to maintain its strength above $96,000 despite a recent dip from its all-time high.

Moreover, investors have been flowing into Bitcoin ETFs and exploring new opportunities in AI-driven tokens and DeFi projects, leading experts to remain optimistic about Bitcoin’s future prospects.

The article concludes by highlighting the launch of two new Bitcoin-focused ETFs, which reflects an ongoing trend where companies are incorporating Bitcoin into their balance sheets.

Source: coinpedia.org