The US Internal Revenue Service will begin taxing DeFi in 2027, and platforms will need to collect and report data from 2026 onwards

On December 28th, according to Finncefeeds, the US Internal Revenue Service (IRS) released final regulations requiring brokers to report digital asset transactions and incorporate decentralized finance (DeFi) platforms into the existing tax framework. This rule will come into effect in 2027 and will require brokers to disclose transaction details, including total earnings and taxpayer information. Brokers must start collecting and reporting data from 2026. The US Internal Revenue Service estimates that 650 to 875 DeFi brokers will be affected, potentially impacting up to 2.6 million taxpayers. These regulations mainly target 'front-end service providers' for transactions, such as decentralized trading platforms (DEX) that facilitate digital asset trading. According to the US Internal Revenue Service, these platforms play intermediary roles and classifying them as brokers will help ensure tax compliance.