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Broker Rule: IRS Requires Non-Custodial Services To Report Trading Informationwww.therage.co/broker-rule-irs-requires-non-custodial-services-to-report-trading-information/
1328 sats \ 19 comments \ @k00b 27 Dec Politics_And_Law
It doesn't go into effect until 2027 at least:
The US Treasury has finalized its "broker rule" to go into effect in 2027, regulating the use of non-custodial trading services – or so called "DeFi" – establishing that custody over funds is not necessary to be considered a broker by the IRS.
Is someone going to tell them that front-end services can be provided by the end users themselves?
A "DeFi front-end service", according to the final regulations, can be defined as "screens, buttons, forms, and other visual elements incorporated in websites, mobile device apps, and browser extensions—that users can use to trade digital assets in their unhosted wallets".
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317 sats \ 6 replies \ @ZezzebbulTheMysterious 27 Dec
This is some truly bad ruling. It was written by someone who has absolutely no clue how any of this works. It speaks of "users" registering accounts with "brokers" after 2028. Requirements for browser plugins to distribute 1099s. How are you going to supply TIN/SSN? Utterly absurd. The treasury is being run by idiots.
The scope is browser wallets, mobile wallets and other non-custodial apps. So potentially even bitcoin core might need to have 1099 and tax withholding features to be legally compliant in the US.
I am pretty confident this is a utterly impossible ruling to enforce.
Enforcement would drive all software development out of the US, as it would be too big a risk to the rest of the world to let the IRS get into the codebase.
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71 sats \ 3 replies \ @petertodd 23h
It was written by someone who has absolutely no clue how any of this works.
It's much more likely that this was written by people who know exactly how it all works and want to shut it all down by creating a legal basis for throwing devs in jail.
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0 sats \ 0 replies \ @ZezzebbulTheMysterious 20h
I guess the deadline to gtfo is set as long as this reg is in place. World travelers like yourself can find safer jurisdiction, but what of the pleb dev today and tomorrow?
What is your prediction of where this will go?
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0 sats \ 1 reply \ @Bell_curve 23h
and people say elections don't have consequences
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22 sats \ 0 replies \ @ZezzebbulTheMysterious 20h
"If voting changed anything, they’d make it illegal" -- Emma Goldman (1869-1940)
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11 sats \ 1 reply \ @siggy47 27 Dec
Very true
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41 sats \ 0 replies \ @Bell_curve 23h
confirm left wing judges, send more money and weapons to Ukraine, issue new IRS rules before Jan 20
I forgot pardons and commutations too
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73 sats \ 1 reply \ @realBitcoinDog 27 Dec
Lmao “unhosted wallets”
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0 sats \ 0 replies \ @028559d218 2h
it's really not funny you know
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61 sats \ 0 replies \ @Bell_curve 27 Dec
link from article:
https://public-inspection.federalregister.gov/2024-30496.pdf
new rule: if your neighbor is a broker, then you are broker adjacent which means you are subject to broker reporting requirements
6 degrees of a broker named Kevin Bacon
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22 sats \ 0 replies \ @Satosora 27 Dec
k00b, you dont have to worry for another 2 years. dont let it bother you haha I have always wondered how taxes work...it must take a lot of time to process for SN.
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70 sats \ 0 replies \ @Rsync25 27 Dec
Soon non-custodial services like wallets will report for IRS. By this K00b was smart adding external wallets usage on the SN.
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11 sats \ 1 reply \ @siggy47 27 Dec
This will have a direct negative impact on Trump's new shitcoin endeavours. I can see him arguing that that rule will drive shitcoin trading offshore. That may benefit bitcoin sites before 2027 too.
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41 sats \ 0 replies \ @Bell_curve 23h
Or he can ignore the rule or rewrite it depending on the new Sec Treasury and IRS commissioner
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11 sats \ 2 replies \ @godlikeXi 27 Dec
2027? With the coming Trump administration I doubt any progress will be made in regards to this legislation.
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154 sats \ 1 reply \ @ZezzebbulTheMysterious 27 Dec
There is nothing to progress -- its not legislation, its regulations. The regulations are now published and finalized. This is the law.
Enforcement begins 2027 unless this regulation is scrapped.
It will need to be scrapped because it is breathlessly stupid and unenforceable.
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42 sats \ 0 replies \ @Bell_curve 23h
New administration can eliminate old and new regulations
Plus Chevron Doctrine no longer has teeth
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0 sats \ 0 replies \ @galt 11h
Don't comply until the state respects its own laws and makes it clear where all the taxpayer money goes (e.g., Ukraine support, Pentagon budget) and prosecute the real people doing money laundering (i.e., the banks). Until then keep your middle finger up
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0 sats \ 0 replies \ @SwapMarket 22h
Hahaha. A country can not regulate an open source code, which is just a sequence of symbols. They don't know where geographically (in which browser/PC) it will be running and who (which country's resident/citizen) will be using it. And neither do the code's authors/maintainers if the code is hosted directly by GitHub. We found this loophole to run a trustless exchange outside anyone's jurisdiction.
EU is making USDT illegal after December 30. But you can still trade it confidentially here.
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