The US Treasury Department and the Internal Revenue Service (IRS) released the final regulations of tax reporting requirements on Friday for brokers and sales and exchanges of digital assets.

The regulations will require cryptocurrency brokers to report gross proceeds on the sale of digital assets beginning in 2026 for all sales in 2025, the Treasury Department said in a statement.

Brokers will also be required to report information on the tax basis for certain digital assets beginning in 2027 for sales in 2026, it added.

"Because of the bipartisan Infrastructure Investment and Jobs Act, investors in digital assets and the IRS will have better access to the documentation they need to easily file and review tax returns," Acting Assistant Secretary for Tax Policy Aviva Aron-Dine said in the statement. "By implementing the law’s reporting requirements, these final regulations will help taxpayers more easily pay taxes owed under current law, while reducing tax evasion by wealthy investors."

The new regulations were developed after the Treasury Department and the IRS held a public hearing and reviewed more than 44,000 comments in response to the proposed rules, according to the statement. (Anadolu Agency)