DeFi

Treasury and IRS finalize broker rule, postpone DeFi decision

Published

7 months ago

28 June, 2024

Treasury and IRS finalize broker rule, postpone DeFi decision

The U.S. Department of the Treasury and the Internal Revenue Service (IRS) have issued new tax guidance for cryptocurrency brokerswhich implements transaction reporting starting in 2025. This new regime, however, postponed decisions on DeFi activities and unhosted wallet providers, since the IRS is still reviewing the 44,000 comments made by the public.

New IRS Reporting Requirements for Brokers

New IRS rules require cryptocurrency brokers such as trading platforms, hosted wallet services and digital asset kiosks to disclose details of customers’ asset movements and gains.

The rules, which will take effect Jan. 1, 2025, aim to bring cryptocurrency brokers into line with conventional investment firms for filing Forms 1099 and cost basis data starting in 2026.

Additionally, the IRS clarified that the new requirements will also include stablecoin transactions and all high-value non-fungible tokens (NFTs), but ordinary sales of stable coins NFT earnings below $10,000 and below $600 per year do not need to be reported. This regulation aims to improve compliance and reduce tax evasion in the high-risk digital asset space.

Deferred Decisions on DeFi and Unhosted Wallets

While the new rule provides clear guidelines for large centralized exchanges like Coinbase and Kraken, it leaves decisions regarding DeFi activities and unhosted wallet providers until later.

The IRS added that non-depository industry participants would not be excluded from treatment as broker-dealers, but further analysis is needed. Final rules for these entities are expected to be published later this year.

IRS Highlights Control Difficulties non-guardian companies, noting that these companies may lack the necessary customer data and transparency frameworks. The move provides some breathing space for the DeFi sector and unhosted wallet providers as more time is given to formulate better rules.

IRS Requirements for Stablecoins and NFTs

The IRS explained that most ordinary stablecoin transactions will not need to be reported, with the exception of certain large transactions and those generating more than $10,000 in annual income.

Stablecoin transactions will be recorded in bulk rather than specific transactions to provide relief to common cryptocurrency users while helping the IRS track whale activities.

For non-fungible tokens (NFT) only taxpayers who earned $600 or more per year from NFT sales must file and report their total income. The IRS will require taxpayer identification information, the number of NFTs sold, and the amount of profit made in these reports. The agency will oversee NFT reporting to ensure it adequately supports tax enforcement.

Industry Concerns and Compliance Burden

The introduction of these tax regulations has been controversial and sparked strong opposition from the cryptocurrency industry. Concerns have been raised about possible overreach by the US government and burdensome requirements placed on entities that do not traditionally operate as brokers, such as miners and software developers.

THE Blockchain Association and the Digital Chamber had highlighted the excessive extent of the information requested and the importance of the compliance burden. They argue that the proposed rule could require the submission of billions of forms, imposing significant costs and time constraints on broker-dealers. The IRS has estimated that the new rule will affect about 15 million people and 5,000 businesses.

In response, the IRS said it aimed to balance the need for comprehensive reporting with the industry’s ability to comply. The agency also noted that any future changes to stablecoin legislation could result in adjustments to tax rules.

Fuente

DeFi

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

6 months ago

29 July, 2024

CoinFlix Staff

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.

The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.

Bonk remains strong despite market fluctuations

While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.

Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.

Pepe should see a big rise in the next bull run

Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.

Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.

In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.

Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4

Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.

With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.

Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.

The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.

RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.

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DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

6 months ago

29 July, 2024

CoinFlix Staff

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.

Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.

According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.

“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.

I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.

The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.

“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”

I expect them to launch actively managed crypto ETFs [in the] coming years. ”

Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.

“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.

Chasing mass adoption of normies may be chasing the wrong Grail from the start.

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