Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of BitMaden. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.

IRS to Require Third-Party Reporting on Crypto Transactions Starting in 2025 (Report)

Starting in 2025, cryptocurrency transactions on centralized exchanges (CEX) will fall under new IRS reporting requirements, marking a significant shift for digital asset investors. These changes mean that transactions conducted through custodial accounts on platforms like Coinbase and Gemini will now be subject to third-party reporting for the first time. New IRS Rules According to a CNN report , the Internal Revenue Service (IRS) has specified that brokers, which include custodial trading platforms, certain wallet providers, digital asset kiosks, and some payment processors, must report these transactions. The information will be captured on a new form, the 1099-DA, which will detail all purchases and sales of digital assets. This form will be sent to both the taxpayer and the IRS by early 2026. Taxpayers will be required to include this information in their 2025 tax returns. Failure to do so could result in discrepancies, as the IRS will already have this data on file. Cost basis reporting, which refers to the original purchase price of a digital asset, will not be required from brokers until the 2026 tax year. Jessalyn Dean, vice president of tax information at Ledgible, explained that this delay may affect taxpayers’ ability to calculate taxable gains accurately. It is important to note that the cost basis is crucial for determining the gains or losses from asset sales. For those engaging in decentralized platform transactions, the timeline is different. Peer-to-peer transactions on platforms like Uniswap and Sushiswap will not be subject to third-party reporting until 2027. These platforms will report only the gross proceeds of transactions, as they do not have access to the original purchase price necessary to calculate the cost basis. Meanwhile, investors in spot Bitcoin exchange-traded funds (ETFs) will also be affected by reporting requirements this year. ETF providers will issue forms such as the 1099-B or 1099-DA, which will include not only the proceeds from sales but also any taxable events that occur within the fund. Dean even advised Bitcoin ETF investors to seek guidance from tax advisers, as taxable gains or losses can arise from the fund’s internal management activities, even if the underlying assets are held long-term. IRS Relief Notice The latest development comes less than a month after the IRS introduced automatic relief for centralized finance users facing new crypto tax regulations in 2025, requiring no immediate action. This relief addresses complications from Section 6045 custodial broker rules, which required CeFi brokers to report transactions using specific accounting methods. Defaulting to FIFO could increase tax liabilities, but taxpayers can bypass this by using their own records or crypto tax software. Starting in 2026, users must select an accounting method with their brokers to avoid default FIFO treatment. The post IRS to Require Third-Party Reporting on Crypto Transactions Starting in 2025 (Report) appeared first on CryptoPotato . Financial Times (Crypto)

---

Ethereum’s Price Outlook: Possible Bullish Breakout Hinges on Key Chart Patterns and Support Levels

Ethereum’s recent price action indicates a potential bullish reversal as a W-pattern forms on the weekly chart. Current market indicators, including a stable MVRV ratio, suggest Ethereum is fairly valued, Financial Times (Crypto)