The U.S. Department of the Treasury proposes new tax regulations, CEX and some DEX need to fulfill tax reporting obligations

Odaily Planet Daily News The U.S. Department of the Treasury recently released a nearly 300-page proposed rule that clearly defines "brokers" in the encryption industry and addresses years of tax reporting uncertainty. Under the new regulations, CEXs, payment processors, some custodial wallet providers, some decentralized exchanges, and individuals or entities that have cashed out their issued crypto tokens will be required to fulfill tax reporting obligations. The new rules also introduce a new tax form for use by newly appointed brokers, addressing previous confusion about which tax form is most appropriate for taxpayers. The proposed rules are still in the proposal stage, with the government set to gather public comment by October 30 and hold a series of public hearings on November 7 and 8. The industry still has time to lobby federal officials to finalize the rule before the 2025 tax year. This move is to reduce the tax gap, address the tax evasion risks posed by digital assets, and ensure that all participants are subject to the same tax rules. (CoinDesk)