Crypto Taxes: The US Treasury Tightens Rules for Traders

Are you a crypto trader? The US government is about to make your life a little different. The Treasury Department and IRS have rolled out new rules that will change how cryptocurrency exchanges operate, especially when it comes to taxes. From now on, if you use a centralized exchange like Coinbase, you'll get a form called 1099-DA. This is basically the crypto version of your W-2 or 1099 forms for other income. The exchange will also report this info to the IRS. Why? To make sure you pay taxes on your digital assets. But don't worry, these rules only apply to centralized exchanges, not decentralized ones (DEX). So if you trade using a DEX, things won't change just yet. The goal is to make tax time easier and catch those who might be trying to dodge taxes. But remember, it's still your job to file accurately! These new rules start in 2025, so get ready for some changes when you file in 2026.