Blockchain Association opposes proposed IRS tax rules
November 15, 2023
By Suzuki Shillsalot
The IRS introduced rules aimed at regulating the sale and exchange of digital assets by brokers.
There has been widespread discussion about the future of crypto taxation in the country.
The Blockchain Association, a U.S.-based cryptocurrency advocacy group, strongly opposed proposed tax regulations by the Internal Revenue Service (IRS) in a comment letter submitted on the 13th of November.
The U.S. Treasury Department had introduced rules aimed at regulating the sale and exchange of digital assets by brokers. However, the Blockchain Association argued that these rules exceeded the IRS’s authority, citing:
“Fundamental misunderstandings about the nature of digital assets and decentralized technology.”
The proposed regulations by the Treasury Department were released in August. They addressed challenges in reporting and paying taxes on cryptocurrency transactions.
The Blockchain Association criticized the proposal. They asserted that many participants in the crypto space, particularly in decentralized finance (DeFi), would face significant difficulties in complying with the regulations.
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