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News Explorer — Draft IRS Form Raises Concerns That U.S. DeFi Users May Have to Disclose Self-Custody Wallets

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Apr 23, 9:15 pm
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Draft IRS Form Raises Concerns That U.S. DeFi Users May Have to Disclose Self-Custody Wallets

The release of a draft IRS form has caused concern in the crypto industry, as it suggests that American DeFi users may have to report their self-custodial wallet addresses to the government. The form, Form 1099-DA, will become mandatory in 2025 for crypto transactions sourced from a broker. The inclusion of a box for "Unhosted Wallet Provider" on the form indicates that the IRS may classify DeFi protocols as brokerage firms, potentially compromising user privacy.

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