For the first time, cryptocurrency transactions in the United States will become subject to third-party tax reporting requirements. This reflects growing interest driven by rising digital asset valuations. The shift could also lead investors to decentralized platforms, as analysts say.
According to the final regulation published by the US Internal Revenue Service (IRS), centralized crypto exchanges (CEXs) and other brokers will start reporting the sales and exchanges of digital assets, including cryptocurrencies,
As per IRS report issued in June 2024, this decision aims to help investors “file accurate tax returns with respect to digital asset transactions,” and to address potential noncompliance in digital currency.
Anndy Lian, author and intergovernmental blockchain said, some investors may see this as an overreach, which could drive more users to decentralized trading platforms.
There’s a “real risk of pushing users toward decentralized platforms like Uniswap or PancakeSwap,” Lian told Cointelegraph.
Swiss state-owned bank PostFinance launches ETH staking
A crypto-friendly retail bank, PostFinance, fully owned by the Swiss government, is offering Ether staking to its 2.7 million customers, who make up roughly a quarter of the Swiss population.
In a blog post on Jan 16, the bank said the service would offer investments using Ether
ETH $3,380.90 for a fixed minimum term of twelve weeks, with the opportunity to sell the credited staking rewards.
It comes as other traditional banks move into the crypto space. In December, Anchorage Digital became the first US federally chartered bank to support liquid Ether staking.
A minimum of 32 Ether is generally required to stake, worth roughly $106,000, according to CoinGecko. PostFinance says it will allow people to stake using 0.1 Ether, worth roughly $331.
Alexander Thoma, head of digital assets at PostFinance, said in a statement that the bank’s staking service will be based on native staking directly on the Ethereum blockchain.
He said, “The staking service is completely integrated into PostFinance’s existing services.”
“This means that customers can see their staking rewards directly in their asset statement, together with their other crypto assets,” Thoma added.
Yuga Labs faces backlash over CryptoPunks IP sale rumors
The CryptoPunks community is facing unrest because of the rumors that Yuga Labs might sell intellectual property (IP) rights to the CryptoPunks NFT collection.
The speculation, originating from a Jan. 14 post on X by Azuki researcher Wale.moca, has sparked backlash from fans and industry stakeholders.
Wale.moca said that "several sources close to the matter" indicated Yuga Labs might be "in the process" of selling the CryptoPunks IP. Yuga Labs acquired the IP rights to 423 CryptoPunks NFTs from Larva Labs in March 2022.
Yuga Labs responded with Creg Solano, co-founder, addressing the rumors on X. He said:
“A lot of people have approached us, especially in the last few months […] Doesn’t mean we are doing anything”
Solano also clarified that while he didn’t rule out the possibility of a deal, any agreement would need to guarantee a long-term positive impact on CryptoPunks.
