IRS Mandates Crypto Reporting: Exchanges Face New Deadline for 1099-DA

The IRS is enacting significant changes to crypto taxation in 2025, impacting exchanges and investors nationwide. Effective January 2025, all crypto brokers will use Form 1099-DA for reporting transactions, aligning cryptocurrency with traditional financial asset tax guidelines. This regulation aims to increase transparency and compliance within the digital asset market, potentially influencing taxpayer behavior and institutional involvement in crypto markets.