Crypto Exchanges to Share Trade Info with IRS by 2026

Starting in 2026, the Treasury Department in the U.S. will make it mandatory for crypto exchanges like Coinbase to disclose the details of user transactions to the Internal Revenue Service (IRS). This move is aimed at reducing tax evasion through cryptocurrencies. Think of it like a report card that crypto investors will get every year, similar to what stock investors get. Until now, crypto investors have struggled with estimating their taxes, often relying on expensive services that might not be accurate. The IRS believes this new rule will generate about $28 billion in tax revenue. This is a big change, but crypto investors need to be ready. It's like making sure you keep receipts for all your trades.

Decentralized exchanges, where trading happens directly between people, won't have to follow this rule. But, the Treasury Department might add more rules for them soon. It's all part of the government's efforts to regulate the crypto market in a way that's been evolving for about a decade. The IRS has had a tough time keeping up with crypto transactions. They've relied on summons to track interesting transactions, but the crypto market changes a lot. This new rule is a big step towards making crypto trading more transparent.

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