The current state of the IRS broker rule

Between the holidays and the New Year And Non-customers, Fiat for crypto and crypto to Krypto-Um to effectively undergo their users when they know their Koycomer (KYC) measurements.

As a rule, it is determined that custody via funds does not have to be classified as a broker by the IRS, the “Defi front-end services” is obliged to report trade activities to the agency via the tax form 1099. This includes every developer of “screens, buttons, forms and other visual elements contained in websites, mobile devices apps and browser extensions. Users can use digital assets in their undisclosed wallets ”.

With his brokerage, the IRS believes that developers have a certain “control” of the services offered, although they never have custody of coins and the lack of ability to influence the underlying protocols. The rule corresponds to the digital guideline-actual-act force (FATF), the developers who are against the financial systems for the financial investments for promoting the promotion of promoting the promotion of promotion of promotion of the promotion of shops and engagement for the engagement, and against engagement for promoting the stores of use and shops and the shops And against the stores of promoting shops and against the shops of promoting the figures of the figure and the exception of services that are subject to.

Similar to FATF, the broker rule defines control as “the Capability Changes, updating, updating, updating, or otherwise influencing the terms, updates or otherwise the terms under which the services are provided. Capability To collect the fees for these services from the transaction flow […] Whether the person actually collects fees in this way or not “and/or whether this person has it Capability “In order to complement the order a sequence of instructions for the query of the cryptographically secured distributed ledger to determine whether the processed order is actually carried out or another confirmation method is based on information that this person is known as the result of providing the trading front services.”

In view of such an enormous exceeding – control over funds was largely understood as a prerequisite that can be regulated as a financial service according to Fincen guidelines – the industry moved quickly. One day after the publication of the rule, the Blockchain Association filed a lawsuit against the IRS and the Ministry of Finance and asked the federal judges to delete the rule from their effect, and claims that the rule was unconstitutional and contrary to the existing federal laws.

In addition to the lawsuit, Senator Ted Cruz introduced a joint resolution to disapprov the IRS rule by congress power.

“This regulation undermines the purpose of Defi technology: Freely buying, selling and exchanging digital assets,” said Cruz in a press release regarding the solution. Represented Corey, who introduced the solution together with Cruz, described the rule as a “clear presentation”.

The resolution was coordinated in the Senate yesterday with an overwhelming support of 70 to 27 in favor and will now switch to coordination in the house.

The broker rule is a further exertion of the bidet management to expand control over non-customer-specific services. Both in the criminal prosecution of Samourai developers and in the criminal prosecution of Tornado-Cash developers, the US Ministry of Justice claims that control over the funds is not necessary in order to remain liable as a financial service business under US law, and argue that the development of user interfaces and other characteristics of a service, the sanctions, anti-monony and the financing of the financing and funding of the promotion of regulations, sanctions, sanctions, loading and loading and combating the requirements for promoting the requirements.

While the possible overturning of the brokers would undoubtedly be a success, the condemnation of Samourai and Tornado-Cash developers would provide similar results regarding reporting requirements for non-customer-specific service providers.

In order to make it clear that the classification as a cash service company is not freed from the classification, the blockchain law on the regulatory certainty of representative Tom Emmer was introduced to the congress and offers developers widespread protective measures.

This is a guest contribution by L0LA L33TZ. The expressions expressed are entirely their own and do not necessarily reflect the BTC INC or Bitcoin magazine.