The New York State Bar Association (NYSBA) Tax Section has recently provided their recommendations on the proposed crypto broker reporting regulations. This development was announced on November 13th, 2023 and the recommendations have been outlined in a comprehensive report.
The proposed regulations come as a result of the 2021 amendments to the Internal Revenue Code. One of the main changes here includes the broadened definition of a broker. Now, the term broker includes ‘any person who (for consideration) is responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person.’
The full extent of the effects of this expanded definition and other changes are discussed in detail in the report composed by the NYSBA Tax Section. The report comprehensively analyses the potential implications on the broader legal and financial landscape, as it relates to cryptocurrency and digital assets. Moreover, the recommendations provided by NYSBA can be an insightful resource for legal professionals navigating these evolving regulations and their effects on the crypto industry.
For an in-depth understanding of the report and its recommendations, please refer to the original publication by Cadwalader, Wickersham & Taft LLP.