Skeptical cryptocurrency users and tax professionals say it will be nearly impossible for the IRS to police decentralized exchanges even as the agency is set to release final regulations on reporting requirements.
Under the rules, brokers on decentralized exchanges will be required to report data on customer transactions to the IRS. The agency aims to regulate the so-called DeFi platforms to prevent tax evasion, but tax advisers question how enforcement will work, as the exchanges don’t track that information.
The agency in June issued final regulations on how centralized cryptocurrency brokers, such as Coinbase Global Inc., should report customer transactions. ...
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