Crypto miners exempt from IRS reporting

Monday 14 February 2022 13:53 CET | News

The US Treasury has confirmed that crypto miners and wallet operators are exempt from the IRS reporting rules, preparing appropriate regulations.

The US Treasury indicated that it plans to exempt crypto miners, stakers, and other market participants from rules that would require crypto brokers to share data on their clients’ transactions with the Internal Revenue Service.

In the letter, Treasury Assistant Secretary for Legislative Affairs Jonathan Davidson said that the department’s position is that ancillary parties who cannot get access to information that is useful to the IRS are not intended to be captured by the reporting requirements for brokers.

Davidson also emphasized that crypto validators are not likely to know whether a transaction is part of a sale, while entities involved in offering services related to hardware or software crypto wallets are not carrying out broker activities.

The Treasury will also consider ‘the extent to which other parties in the digital asset market, such as centralized exchanges and those often described as decentralized exchanges and peer-to-peer exchanges, should be treated as brokers,’ as the letter notes.

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Keywords: cryptocurrency, regulation, treasury, DeFi
Categories: DeFi & Crypto & Web3
Countries: United States
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DeFi & Crypto & Web3

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