The US Treasury Department and the Internal Revenue Service have just published a proposal that would create new guidelines on what crypto brokers must report for the sale and exchange of digital assets.
Under the new rules, the term “crypto brokers” includes crypto trading platforms, digital asset payment processors, certain providers of digital asset-hosted wallets, and individuals who regularly offer to exchange crypto assets they have created or issued.
The proposal aims to require brokers to report new information about the sale and exchange of crypto assets by their users to tax authorities.
“Based on existing authority and on changes to applicable tax law by the Infrastructure Investment and Jobs Act, these proposed regulations would require brokers, including digital asset trading platforms, digital asset payment processors, and certain digital asset-hosted wallets, to return information to be submitted on file and provide beneficiary statements about the dispositions of digital assets made for customers in certain sales or exchange transactions.
The Treasury Department and the IRS are now asking for comment on the proposed rules until Oct. 30. A public hearing is also scheduled for November 7.
Meanwhile, US accounting standards have adopted new financial reporting guidelines for reporting the value of corporate-owned crypto assets.
Crypto market analyst Jamie Coutts of Bloomberg Intelligence say the development, which allows companies to report the most current value of a crypto asset, is a major adoption catalyst.
“The winds of change – Bitcoin (and other crypto) is getting fair accounting treatment.
Companies will now be able to judge BTC on its merits as a store of value and debasement hedge with a punitive accounting rule.”
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