KPMG report: Exceptions under final broker digital asset reporting regulations
Closed loop transactions and limited access regulated networks
The final regulations published in the Federal Register on July 9, 2024, regarding information reporting under sections 6045 and 6050W for certain digital asset sales and exchanges (read TaxNewsFlash) provide exceptions to reporting for certain sales of digital assets involving closed loop transactions. The regulations also provide a separate exception to the rules requiring that dual classification assets be reported as digital assets if those dual classification assets are settled on a limited-access regulated network.
Read an October 2024 report prepared by KPMG LLP that explores the nuances of both exceptions and explains the difference between the two.