“New IRS regs are on the way for bitcoin - complicating reporting even further.

Essentially, before 2025 begins, the IRS wants bitcoin holders to allocate their cumulative cost basis of their assets among designated wallets.

They're requesting this in anticipation of a new accounting method which mandates that gains/losses on bitcoin is calculated independently in distinct wallets.

This new rule is rolling-out in tandem with a new tax form called the 1099-DA, which will be filed by exchanges/brokers to report details of client gains/losses to the IRS.

As we anticipated, they're going to make the administrative burden on using bitcoin - as currency- evermore difficult. They're effectively discouraging self-custody and privacy with these kinds of regulations.

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These new regulations will result in more exchange power and centralization, less privacy, and more overhead for those who want to use bitcoin legally as a currency.

Also to note, the IRS has begun to integrate AI into their review of tax returns and blockchain activity.

Walls closing in, gentlemen.”