Digital Assets: From Crypto to Compliance
Digital assets based on blockchain technology have evolved at a remarkable rate, often outpacing regulations. But the rules are finally starting to catch up.
Here’s what you need to stay ahead.
At KPMG, we are dedicated to staying ahead of technological innovations, regulatory changes, and your business challenges. That includes the rapidly evolving frontier of blockchain-based digital assets and the rules that govern them—now and in the near future.
To help you understand coming changes, maintain compliance, and take advantage of the opportunities in this dynamic field, we have created this page as a repository of insights on digital asset regulations.
Digital Assets: An Evolving Frontier
Read our foundational article on staying ahead of compliance complexity in crypto.
IRS Issues Notice 2026-20 Providing Transitional Guidance on the Specific Identification Rule for Broker Held Digital Assets
March 20, 2026
The IRS has extended key transitional relief for broker held digital assets through December 31, 2026, giving taxpayers additional time to apply specific identification rules while broker systems continue to evolve. Under IRS Notice 2026 20, eligible taxpayers may continue to rely on their own books and records during the relief period to determine which digital asset units are treated as sold—even when broker reporting may not yet support full lot level identification.
While the relief offers welcome flexibility for cost basis planning and standing orders, it also increases documentation and reconciliation responsibilities, particularly where Form 1099 DA reporting does not align with internal records. This article outlines what the extension covers, where the risks remain, and how tax professionals can help clients prepare now for a more broker integrated reporting environment beginning in 2027.
Read full article to learn more about this guidance.
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IRS Proposed Regulations to Facilitate Electronic Furnishing of Form 1099‑DA
IRS Issues Updated Draft Instructions for the Requester of Form W-9
IRS Issues Final 2026 Version of Form 1099-DA
IRS Released Updated Draft of 2026 Instructions for Form 1099-DA
IRS Published FAQs about Broker Reporting
Treasury and IRS release 2025-2026 Priority Guidance Plan
IRS Issued Draft Version of Form W-9
IRS Issued Forms 1099-DA and 1099-B Drafts
White House Working Group Report Addressing Information Reporting and Backup Withhold on Digital Assets Sales
IRS Provides Transitional Relief for Digital Assets Sales
President Trump Signs Resolution Overturning Digital Asset Reporting Regulations
Final Treasury Regulations Expand Tax Reporting on DeFi Digital Asset Transactions
Crypto-Asset Reporting Framework and Amended Common Reporting Standard Updates
Closed Loop Transactions vs Limited Access Regulated Networks
Draft Instructions for Form 1099-DA, Digital Asset Proceeds from Broker Transactions
Treatment of Nonfungible Tokens under Final Regs
Stablecoins Under the Final Regulations
Information Reporting for U.S. Digital Asset Brokers
Cost Basis Reporting for U.S. Digital Asset Brokers
Documentation Rules Under the Final Regulations
Backup Withholding for U.S. Digital Asset Brokers
Planning Implementation of Broker Digital Asset Reporting Regulations
Final Treasury Regulations: Expand Tax Information Reporting
Information Reporting & Withholding Tax Services
Services to help comply with U.S. and foreign withholding and information reporting regimes
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June 10, 2025 | Digital Assets Reporting Update: Spring/Summer 2025
This TaxWatch webcast outlines the latest digital asset tax regulations and Executive Orders, industry's current focus and implementation progress, and provides insights into global compliance standards and trends.
Digital Assets: An Evolving Frontier
Stay ahead of compliance complexity in crypto
October 23, 2024 | Where to Start with Your Form 1099 Product Analysis for Digital Assets
This TaxWatch webcast outlines essential aspects of digital asset product analysis including objectives, components, and outcomes of a product analysis, as well as mapping the essential annual reporting data elements back to the analysis.