The IRS requires DeFi brokers to collect user transaction information

The U.S. Treasury Department said on Friday that it has finalized rules requiring certain decentralized finance brokers to report gross proceeds from digital asset sales. According to a statement released by the U.S. Treasury Department, the new rules require "DeFi brokers" to act like traditional brokers that handle securities and are required to collect information about their users' transactions and send them 1099 forms. Brokers must send these 1099 forms to customers, which are used to report payments that are not usually from employers, such as income other than wages, and now some "decentralized financial industry participants" must file tax returns that disclose "the name and address of each customer."