KYC and IRS tax reporting are coming to DeFi platforms as a result of the newly released DeFi broker tax regulations.

The Blockchain Association has filed a lawsuit against the Internal Revenue Service (IRS) over its new regulations for the decentralized finance (DeFi)

The latest DeFi guidelines are set to take effect on January 1, 2027. The crypto community has taken to social media to express its grievances after the U.S. Treasury and Internal Revenue Service (IRS) launched their updated DeFi tax reporting requirements on Friday.

IRS issued much anticipated final regulations on DeFi informational reporting on December 27, 2024. This clarifies requirements and exclusions for DeFi participants.

The IRS is going after decentralized finance (DeFi) brokers with a vendetta. If left, starting in 2027, these brokers will be required to report every dime made in crypto sales. The new rules fall under section 6045 of the Internal Revenue Code and are part of this big push to extend traditional tax regulations to