U.S. Treasury to introduce tax rules for cryptocurrency

US Treasury to introduce tax rules for cryptocurrency

Cryptocurrency exchanges will have to comply with the same rules on reporting user transaction data as traditional brokers

Cryptocurrency brokers, including exchanges and payment systems, will have to report new data on sales and exchanges of digital assets by users to the U.S. Internal Revenue Service (IRS), Reuters reported, citing a new U.S. Treasury rule.

The agency also unveiled a new tax form that cryptocurrency companies will have to fill out. Mainers are exempt from the tax rules, but some decentralized financial platforms will not be affected, the department's guidance notes.

Congress and regulators are seeking tougher action against tax-evading cryptocurrency users, the publication said. The proposed new tax reporting form, Form 1099-DA, is designed to help taxpayers determine whether they owe taxes and avoid having to make complex calculations to calculate income, the publication wrote, citing a statement from the Treasury Department.

Brokers of digital assets will be subject to the same rules on providing data on user transactions as traditional brokers, the article notes.

In July, US presidential candidate Robert Francis Kennedy Jr. said he would exempt the conversion of bitcoins into US dollars from capital gains tax if he wins the election.