New measures aim to deter tax evasion and simplify filing for law-abiding investors

  • Treasury finalizes rules requiring cryptocurrency platforms to report user transactions to IRS
  • Rules aim to deter tax evasion and simplify tax filing for law-abiding investors
  • Reporting requirements will initially apply only to custodial platforms like Coinbase and Binance
  • Non-custodial platforms, such as DeFi, exempt from initial reporting rules
  • Rules expected to generate $28 billion in federal revenues over a decade

The Treasury Department has finalized rules requiring many cryptocurrency platforms to report information about their users’ transactions to the Internal Revenue Service. This move aims to deter tax evasion by making it clear to would-be miscreants that the IRS knows how much they owe and help law-abiding crypto investors with simplified tax filing. The reporting requirements will initially apply only to custodial platforms like Coinbase and Binance, which take possession of customer assets. Non-custodial platforms, such as decentralized finance (DeFi) platforms, are exempt from the initial rules. The new measures are expected to generate $28 billion in federal revenues over a decade.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the Treasury Department’s new rule requiring cryptocurrency platforms to report user transactions to the IRS. It explains the purpose of this measure, its scope, and its potential impact on tax evasion and compliance in the crypto market. The article also includes relevant background information and quotes from an official source. However, it could be more concise and avoid using sensational language.
Noise Level: 6
Noise Justification: The article provides relevant information about the Treasury Department’s new rule requiring cryptocurrency platforms to report user transactions to the IRS, which aims to reduce tax evasion and provide better access to documentation for investors. However, it includes some lobbying details and a brief mention of a historical figure in the crypto space that may not be essential for understanding the main topic.
Public Companies: Coinbase (COIN), Binance (null)
Key People: Aviva Aron-Dine (Treasury’s acting assistant secretary for tax policy), Roger Ver (Early crypto investor)

Track all markets on TradingView

Financial Relevance: Yes
Financial Markets Impacted: Cryptocurrency platforms and markets
Financial Rating Justification: The article discusses the Treasury Department’s requirement for cryptocurrency platforms to report information about users’ transactions to the Internal Revenue Service, which will impact tax evasion in the cryptocurrency market and potentially affect companies like Coinbase and Binance. This decision is expected to generate $28 billion in federal revenues over a decade. The new rule has an impact on the financial markets by increasing transparency and reducing noncompliance in the crypto industry.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event in the text.

Reported publicly: www.wsj.com