IRS and the Challenges of DeFi Regulations 🚨

The IRS faces a new challenge in regulating the DeFi market. At the center of the issue are protocols like Uniswap, which operate in a decentralized manner, complicating the tax reporting process.

One of the key problems is identifying accountable parties in decentralized protocols, where the absence of traditional intermediaries makes enforcement more difficult. The IRS is exploring new regulatory approaches to better align its rules with the realities of DeFi.