Stay ahead of compliance complexity in crypto.
But the rules are finally starting to catch up. Following the publication of the final U.S. broker digital asset reporting regulations in the Federal Register on July 9, 2024, industry participants must evaluate the relevance of these rules to their operations and devise implementation strategies. For many companies dealing with crypto transactions, opting for a managed services agreement could be the most efficient approach to navigate this intricate and rapidly changing set of rules.
Click here to discover the types of blockchain-based digital assets.
Digital asset reporting rules are changing and will keep evolving with technology and use cases. Learn why managed services can be a highly effective way to ensure compliance.
The IRS has significantly expanded reporting requirements for digital assets, which may require substantial adjustments in reporting practices and systems.
The new regulations introduce complexities that CFOs and tax professionals will need to consider in their digital asset strategies.
Download PDFFor many companies, a managed services agreement may prove the most efficient way to validate and prepare forms and ensure compliance. When considering options, here are a few key requirements:
A crypto product matrix should categorize different products and services, mapping them to specific reporting, withholding, and due diligence requirements.
Clearly defined business requirements are essential to capture, process, and report digital asset transactions accurately.
Comprehensive testing to ensure the reliability of updated systems should cover various transaction scenarios and types of assets.
A thorough review of system logic is important to ensure it accurately interprets and applies the new rules.
Assessments should cover data availability, system capabilities, staff training needs, and the potential business impacts of the new reporting requirements.
Systems should include regular health checks to identify potential non-compliance for prior years and to test if the new end-to-end compliance process works as envisioned.
Assistance with voluntary disclosures can help address historical compliance concerns and mitigate potential penalties.
Ongoing access to general tax technical consulting and advisory assistance can be invaluable for staying compliant and adapting to future changes.
At KPMG, we have dedicated technology, resources and talent to help you not only navigate digital asset rules as they come online but remain a step ahead of their continued evolution:
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