Starting in 2025, the IRS will require centralized exchanges to report digital asset transactions, raising concerns among users that they may shift to decentralized platforms such as Uniswap or PancakeSwap.
Anndy Lian highlighted a paradox: the IRS’s aim for tax revenue could inadvertently lead users to less regulated environments. The Blockchain Association has also challenged the IRS’s classification of decentralized exchanges in court.
By 2027, improvements in blockchain analytics can likely make DeFi transactions more traceable. The European MiCA framework will also impose taxation obligations on retail investors, affecting market dynamics.
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