Thread

The IRS just finalized its new broker rule, finding that control is not necessary to be considered a broker subject to IRS reporting requirements. It's a nightmare for every non-custodial exchange and swap provider. Built a website to let users swap between currencies? You're a broker under IRS reporting requirements. Built a mobile app to let users swap between currencies? You're a broker under IRS reporting requirements. Built a browser extension to let people swap between currencies? You're a broker under IRS reporting requirements. As long as you have the ability to collect fees on a trade, or have the ability to affect the terms under which a trade is provided, or a whole bunch of other nonsense, you're a broker, which makes pretty much any non-custodial exchange or swap provider a broker. While wallets without swap or exchange features are excluded by the broker rule, it's a taste of what's to come for BSA reporting requirements for non-custodial software. INB4: "bUt ThEy CaN'T FoRcE mY nOn-CuStOdIaL wAlLeT tO Do aNyThiNg" That's right they can't. But they can force the people building the software and services. And if they don't, they'll go to jail. Unless challenged, the rule goes into effect in 2027.
The Rage
Broker Rule: IRS Requires Non-Custodial Services To Report Trading Information
Custody over funds is not necessary to be considered a broker by the IRS.

Replies (18)

🛡️
Its time to stop building cucked companies and start building black market infrastructure
L0la L33tz's avatar L0la L33tz
The IRS just finalized its new broker rule, finding that control is not necessary to be considered a broker subject to IRS reporting requirements. It's a nightmare for every non-custodial exchange and swap provider. Built a website to let users swap between currencies? You're a broker under IRS reporting requirements. Built a mobile app to let users swap between currencies? You're a broker under IRS reporting requirements. Built a browser extension to let people swap between currencies? You're a broker under IRS reporting requirements. As long as you have the ability to collect fees on a trade, or have the ability to affect the terms under which a trade is provided, or a whole bunch of other nonsense, you're a broker, which makes pretty much any non-custodial exchange or swap provider a broker. While wallets without swap or exchange features are excluded by the broker rule, it's a taste of what's to come for BSA reporting requirements for non-custodial software. INB4: "bUt ThEy CaN'T FoRcE mY nOn-CuStOdIaL wAlLeT tO Do aNyThiNg" That's right they can't. But they can force the people building the software and services. And if they don't, they'll go to jail. Unless challenged, the rule goes into effect in 2027.
The Rage
Broker Rule: IRS Requires Non-Custodial Services To Report Trading Information
Custody over funds is not necessary to be considered a broker by the IRS.
View quoted note →
🛡️
Building the software is an easy fix -- move the git repos to Tor. Sort of surprised this isn't more common yet especially afyer Samourai. Though you could also access clearnet repos from behind a Tor exit. Or just post to Sourceforge from behind a Russian proxy if your name rhymes with Batoshi Lakamoto. Moving fiat around ourside their reach though is much harder, at least without chasing off the normies. Might not be long before you're buying Bitcoin for gift cards (which you can already do on Bisq). That all said, it'd be a weird move to create a strategic reserve AND destroy demand for that asset all at the same time. Though perhaps the play is to try to turn Bitcoin into money for governments, and lock the plebs into fiat, much like Bretton Woods did with gold. Run your node, stack your sats, and stay cipherpunk as fuck.
Interesting times ahead especially for swap services like TrocadorApp. At the end this leads to more Monero adoption. Many ppl have a Bitcoin stack and use Monero for payments. They need swap services. If that isn't possible anymore I can imagine that many of them leave Bitcoin for good image and use Monero only. When they arrested the Samourai Wallet devs we saw a spike with Monero transactions. That's why I think we can see that again and with that a steady growing as more people have to think more careful how to route around the financial system. If you don't re-think your goals with Bitcoin you will be trapped sooner or later.
L0la L33tz's avatar L0la L33tz
The IRS just finalized its new broker rule, finding that control is not necessary to be considered a broker subject to IRS reporting requirements. It's a nightmare for every non-custodial exchange and swap provider. Built a website to let users swap between currencies? You're a broker under IRS reporting requirements. Built a mobile app to let users swap between currencies? You're a broker under IRS reporting requirements. Built a browser extension to let people swap between currencies? You're a broker under IRS reporting requirements. As long as you have the ability to collect fees on a trade, or have the ability to affect the terms under which a trade is provided, or a whole bunch of other nonsense, you're a broker, which makes pretty much any non-custodial exchange or swap provider a broker. While wallets without swap or exchange features are excluded by the broker rule, it's a taste of what's to come for BSA reporting requirements for non-custodial software. INB4: "bUt ThEy CaN'T FoRcE mY nOn-CuStOdIaL wAlLeT tO Do aNyThiNg" That's right they can't. But they can force the people building the software and services. And if they don't, they'll go to jail. Unless challenged, the rule goes into effect in 2027.
The Rage
Broker Rule: IRS Requires Non-Custodial Services To Report Trading Information
Custody over funds is not necessary to be considered a broker by the IRS.
View quoted note →
🛡️
Just set up sites on Tor and I2P and the IRS will have an aneurysm.
L0la L33tz's avatar L0la L33tz
The IRS just finalized its new broker rule, finding that control is not necessary to be considered a broker subject to IRS reporting requirements. It's a nightmare for every non-custodial exchange and swap provider. Built a website to let users swap between currencies? You're a broker under IRS reporting requirements. Built a mobile app to let users swap between currencies? You're a broker under IRS reporting requirements. Built a browser extension to let people swap between currencies? You're a broker under IRS reporting requirements. As long as you have the ability to collect fees on a trade, or have the ability to affect the terms under which a trade is provided, or a whole bunch of other nonsense, you're a broker, which makes pretty much any non-custodial exchange or swap provider a broker. While wallets without swap or exchange features are excluded by the broker rule, it's a taste of what's to come for BSA reporting requirements for non-custodial software. INB4: "bUt ThEy CaN'T FoRcE mY nOn-CuStOdIaL wAlLeT tO Do aNyThiNg" That's right they can't. But they can force the people building the software and services. And if they don't, they'll go to jail. Unless challenged, the rule goes into effect in 2027.
The Rage
Broker Rule: IRS Requires Non-Custodial Services To Report Trading Information
Custody over funds is not necessary to be considered a broker by the IRS.
View quoted note →