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Digital Assets

Meaning

Digital Assets, within the expansive realm of crypto and its investing ecosystem, fundamentally represent any item of value or ownership rights that exist solely in digital form and are secured by cryptographic proof, typically recorded on a distributed ledger technology (DLT). These encompass a broad spectrum, from fungible cryptocurrencies and stablecoins to non-fungible tokens (NFTs) and tokenized real-world assets, each embodying distinct economic and programmable properties. Their core purpose is to facilitate secure, transparent, and immutable transfer of value or rights across decentralized networks, fundamentally altering traditional notions of ownership and transaction.
How Will the IRS Handle Cross-Border Transactions and Reporting from Foreign Crypto Exchanges? Interlocking transparent and opaque components on a dark base embody a Crypto Derivatives OS facilitating institutional RFQ protocols. This visual metaphor highlights atomic settlement, capital efficiency, and high-fidelity execution within a prime brokerage ecosystem, optimizing market microstructure for block trade liquidity.

How Will the IRS Handle Cross-Border Transactions and Reporting from Foreign Crypto Exchanges?

The IRS is leveraging a combination of existing foreign account reporting rules, new crypto-specific regulations like Form 1099-DA, and international cooperation through the Crypto-Asset Reporting Framework to ensure comprehensive reporting and enforcement of tax obligations on cross-border crypto transactions.