New regulations outline reporting requirements for digital asset brokers and include transition relief for certain brokers

Recently released final regulations and accompanying notices require brokers to report sales and exchanges of digital assets beginning in calendar year 2025. Further, cost-basis reporting will be required by certain brokers for transactions occurring on or after January 1, 2026. This timeline, as well as the complexity of the requirements, presents challenges not only to centralized cryptocurrency exchanges, but also to traditional financial institutions and many others. Firms across the spectrum will need to determine how the new regulatory requirements impact any existing processes and technology, from customer onboarding to reporting.

Join EY for a webcast discussion of the regulatory requirements and implementation considerations. Agenda topics will include:

• The effective date
• Definitions of “broker” and “digital asset”
• Due diligence requirements
• Information reporting requirements
• Basis reporting rules
• Considerations for operationalizing the requirements
• Transitional rules in Notices 2024-56 and 2024-57

Date: Thursday, August 8, 2024

Time: 1:00–2:00 p.m. ET New York; 10:00–11:00 a.m. PT Los Angeles

Registration: Register for this event.

Panelists

• Tara Ferris, Principal, Information Reporting and Withholding/Customer Tax Operations and Reporting Services Leader, Ernst & Young LLP
• Jonathan Jackel, Managing Director, Information Reporting and Withholding/Customer Tax Operations and Reporting Services, Ernst & Young LLP
• Ryan Blewitt, Managing Director, Information Reporting and Withholding/Customer Tax Operations and Reporting Services, Ernst & Young LLP
• Seth Poloner, Managing Director, Information Reporting and Withholding/Customer Tax Operations and Reporting Services, Ernst & Young LLP

Moderator

• Thomas Shea, Principal, Financial Services Crypto Tax Leader, Ernst & Young LLP

CPE credit offered: up to 1.2 depending on duration. Recommended field of study: Taxes. Learning objectives: Analyze the operational impact of the new requirements of the final regulations; discuss how to prioritize the impacts for a given business and how to leverage existing processes to accelerate implementation. This intermediate level, group internet-based course has no prerequisites or advanced preparation. Final CPE award to be based on content, polling and length of participation. See CPE FAQ for more information.

EY webcast managed and produced by Ernst & Young LLP’s Tax Technical Knowledge Services Group, Washington, DC: Lynn Fairfax | lynn.fairfax@ey.com and Barbara Kirchheimer | Barbara.Kirchheimer@ey.com

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