The US Treasury Department announced on Friday that it has finalized rules requiring certain decentralized financial brokers to report the total proceeds of digital asset sales. According to a statement released by the US Treasury Department, the new regulations require "DeFi brokers" to act like traditional brokers handling securities and be required to collect information about their users' trades and send them 1099 forms. Brokers must send these 1099 forms to clients, which are used to report payments that typically do not come from employers, such as income other than wages. Now, some "decentralized financial industry participants" must submit tax returns disclosing "each client's name and address". @tyrogue

These new regulations by the US Treasury Department mark a significant shift in the treatment of decentralized financial brokers, bringing them closer to traditional financial institutions in terms of reporting requirements. Compliance with these rules will likely pose challenges for DeFi brokers and users alike in terms of privacy and operational efficiency.