When we want to understand the new IRS proposed regulations on digital asset brokers, Ian Andrews (CMO, Chainalysis) knows to speak to Roger Brown (Global Head of Tax Strategy, Chainalysis) before anyone else.
Roger does an excellent job demystifying who is going to be captured by the proposed regs and defines key terms in the regulations such as brokers, digital asset middlemen and persons that will be impacted by the proposed legislation.
He also dissects the impact of these new tax rules on crypto exchanges, payment processors, decentralized platforms, and even DAOs to and describes what facilitative services are that are material to being captured under the regs.
Ian and Roger also discuss how travel rule requirements may be sufficient to satisfy tax rule reporting and highlight the importance of assessing effective KYC obligations.
Minute-by-minute episode breakdown
- (2:13) - Overview of the recent IRS regulations on crypto tax reporting
- (4:08) - Definition of a broker and digital asset middleman in the context of digital assets
- (8:20) - Impact of the regulations on decentralized protocols and platforms
- (11:45) - Importance of information reporting in crypto to tackle the tax gap
- (16:50) - IRS's approach to regulating decentralized exchanges leading with guidance vs enforcement
- (19:02) - Questioning why stablecoin transactions are subject to reporting
- (24:08) - Speculation on the reaction of payment processors to the reporting requirements
- (28:27) - Potential overlap between travel rule compliance and tax reporting
- (31:45) - Consideration of peer-to-peer exchanges and possibility of bypassing reporting requirements by directly interacting with smart contracts
- (35:35) - Importance of assessing effective KYC obligations - It's not a matter of if they will apply it's a matter of when
Related resources
Check out more resources provided by Chainalysis that perfectly complement this episode of the Public Key.
Speakers on today’s episode
- Ian Andrews * Host * (Chief Marketing Officer, Chainalysis)
- Roger Brown (Global Head of Tax Strategy, Chainalysis)
This website may contain links to third-party sites that are not under the control of Chainalysis, Inc. or its affiliates (collectively “Chainalysis”). Access to such information does not imply association with, endorsement of, approval of, or recommendation by Chainalysis of the site or its operators, and Chainalysis is not responsible for the products, services, or other content hosted therein.
Our podcasts are for informational purposes only, and are not intended to provide legal, tax, financial, or investment advice. Listeners should consult their own advisors before making these types of decisions. Chainalysis has no responsibility or liability for any decision made or any other acts or omissions in connection with your use of this material.
Chainalysis does not guarantee or warrant the accuracy, completeness, timeliness, suitability or validity of the information in any particular podcast and will not be responsible for any claim attributable to errors, omissions, or other inaccuracies of any part of such material.
Unless stated otherwise, reference to any specific product or entity does not constitute an endorsement or recommendation by Chainalysis. The views expressed by guests are their own and their appearance on the program does not imply an endorsement of them or any entity they represent. Views and opinions expressed by Chainalysis employees are those of the employees and do not necessarily reflect the views of the company.
Public Key