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US IRS Releases Draft of 2025 Digital Asset Reporting Form for US Taxpayers

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2 years ago

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The Internal Revenue Service (IRS) has taken a major step forward in the evolution of taxation of digital assets by releasing a draft of the 2025 Digital Asset Reporting Form for U.S. taxpayers. This initiative is aimed at enhancing compliance and oversight in the rapidly growing digital asset market.

As cryptocurrencies and other digital assets play increasingly prominent roles in the global economy, this new form will be crucial for both taxpayers and the IRS to ensure accurate reporting and fair taxation.

Overview of the 2025 Digital Asset Reporting Form

The Internal Revenue Service (IRS) has taken a major step forward in the evolution of taxation of digital assets by releasing a draft of the 2025 Digital Asset Reporting Form for U.S. taxpayers.
US IRS Releases Draft of 2025 Digital Asset Reporting Form for US Taxpayers 2

Dive into the specifics of the IRS’s newly proposed 2025 Digital Asset Reporting Form, designed to streamline the reporting process for all parties involved in digital asset transactions. We will cover the motivations behind the form, its expected impact, and the key details that taxpayers need to know.

More info here:
https://www.federalregister.gov/d/2023-17565

Key Features of the New Form

The upcoming Digital Asset Reporting Form, the Form 1099-DA, is a response to the increasing integration of digital assets like cryptocurrencies, NFTs, and stablecoins into the mainstream financial ecosystem.

Set to be introduced by the IRS for use in 2025, this form represents a pivotal shift towards standardizing the reporting of digital asset transactions, aligning them more closely with traditional financial reporting mechanisms.

What will be reported on Form 1099-DA?

Form 1099-DA will provide information about the sale or dispose of digital assets. The IRS defines this as cryptocurrencies, NFTs, and stablecoins.

Form 1099-DA will report the same information that is already reported on Form 1099-B for stocks:

  • When you received the digital asset (acquisition date)
  • How much did you pay for it (cost basis)
  • When you sold or swapped it (sale or disposal date)
  • How much money you made by selling or swapping it (sales proceeds)
  • Gross proceeds (total proceeds from that exchange or broker, without taking cost basis into consideration)
  • This will apply to sales made after January 1, 2025, therefore you will receive your first 1099-DA form in January 2026.

Scope and Reporting Requirements:

Under the new regulations, brokers and other intermediaries will be required to report transactions involving digital assets using the Form 1099-DA. This form will capture essential data such as the taxpayer’s name, address, tax identification number, and the gross proceeds from the sale of digital assets.

Significantly, it will also include the adjusted basis of the assets sold, allowing for a more accurate calculation of capital gains or losses.

Standardization of Reporting:

The Form 1099-DA is designed to replace various forms previously used to report digital transactions, such as Forms 1099-B, 1099-K, and 1099-MISC.

This consolidation aims to reduce confusion and improve the accuracy of reported data. The form will facilitate the IRS’s ability to track and tax digital transactions more effectively, mirroring the compliance levels seen with traditional securities​​.

Privacy and Compliance Challenges:

The introduction of Form 1099-DA also raises questions about privacy due to the required reporting of sensitive information such as wallet addresses and blockchain transaction IDs.

Brokers will need to navigate these requirements carefully to protect client information while complying with IRS directives.

Implementation Timeline of the DA-1099 Form:

Brokers must start reporting transactions using the Form 1099-DA for sales of digital assets that occur on or after January 1, 2025. This gives financial institutions and taxpayers time to prepare for the changes, although the final regulations are yet to be issued.

The IRS is currently soliciting comments and feedback on these proposed regulations, indicating that adjustments could still be made based on stakeholder input​​.

These changes underscore the IRS’s commitment to closing the tax gap associated with digital assets by bringing transparency to this rapidly evolving sector. Both taxpayers and brokers should prepare for significant changes in how digital asset transactions are reported, with an eye towards compliance by the 2025 deadline.

Who Needs to File the DA-1099 Form?

The Form 1099-DA is specifically designed for brokers and other intermediaries who facilitate the sale and exchange of digital assets. These entities are responsible for collecting and reporting detailed information about transactions to both the IRS and the involved taxpayers.

Individuals and businesses engaging in digital asset transactions through brokers will see these transactions reported on their behalf​​.

Challenges for Taxpayers:

Taxpayers face several challenges under the new regulations, particularly in terms of compliance and record-keeping.

The requirement to disclose detailed transaction information, including potentially sensitive data like wallet addresses, could raise privacy concerns.

Furthermore, the accuracy of the reported information is crucial as it directly affects tax liability calculations​​.

Mitigating Compliance Risks:

To mitigate these risks, taxpayers should ensure they maintain thorough records of their digital asset transactions.

This includes tracking the acquisition cost, the date of each transaction, and any exchanges or transfers of assets.

Such meticulous record-keeping will be essential for accurately reporting to the IRS and resolving any discrepancies that may arise from broker-reported data​​.

Potential Penalties:

Failure to accurately report digital asset transactions can result in substantial penalties. Taxpayers relying on brokerages to report their transactions must verify that all information is complete and accurate to avoid potential legal and financial penalties.

Regular consultation with tax professionals may be advisable to stay compliant with the evolving regulatory landscape​​.

Final Thoughts and FAQ’s

The release of the IRS Form 1099-DA is a pivotal development in the taxation of digital assets. It reflects the growing recognition of digital assets in the financial system and underscores the IRS’s commitment to ensuring all taxable events are reported and taxed accordingly.

For taxpayers, the form represents both a challenge and an opportunity to align their reporting practices with these new regulatory standards.

FAQs on the 2025 Digital Asset Reporting Form

1. What digital assets qualify for reporting on the new IRS DA-1099 form?
All digital assets that are considered “digital representations of value” and can be recorded on a cryptographically secured distributed ledger qualify for reporting. This includes cryptocurrencies like Bitcoin and Ethereum, stablecoins, and non-fungible tokens (NFTs). The broad scope ensures that any digital asset used in a manner similar to traditional financial instruments is covered​​.

2. Who is required to fill out the 2025 Digital Asset Reporting Form?
Brokers and other financial intermediaries who facilitate the trading, sale, or exchange of digital assets will need to fill out and file Form 1099-DA. This requirement extends to any entity that acts as a middleman in the digital asset market, providing services that effectuate these transactions​​.

3. What are the penalties for non-compliance with the new digital asset reporting requirements?
Non-compliance can result in significant penalties, including fines and legal consequences. These penalties are intended to enforce accurate reporting and compliance with tax obligations. The IRS emphasizes the importance of accurate information reporting to reduce the tax gap related to digital asset transactions​.

4. How can taxpayers prepare for the transition to the new reporting requirements?
Taxpayers should begin by ensuring they have robust systems for record-keeping that can track purchase dates, costs, and details of every transaction involving digital assets. Engaging with tax professionals who are knowledgeable about digital assets and new IRS regulations can also help in preparing for these changes. Regular updates from IRS guidelines will be crucial as the implementation date approaches​.

5. Where can taxpayers find more information and assistance with filling out the form?
Taxpayers can find more information on the IRS website under the digital assets section. Additionally, professional tax advisors familiar with digital asset regulations can provide guidance. Educational resources and webinars are also expected to be available as the implementation date nears, aimed at helping both taxpayers and professionals understand and adapt to the new requirements.

For more specific details or further reading, you might consider checking the official IRS website( IRS.gov) or consulting with tax professionals who specialize in digital assets.

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GameFi News: HumidiFi Surges as Demand for Dark-Pool Trading Explodes—Following Aster’s Breakout

Published

11 hours ago

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November 27, 2025

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Aster’s rapid rise has sparked renewed interest in protocols offering similar trading tools—and one platform in particular is capitalizing on the moment. HumidiFi, a Solana-based dark-pool DEX, has seen a major surge in use over the past few days, even outperforming Orca and Meteora as traders look for deeper liquidity and more private executions.

HumidiFi Breaks Into Solana’s Top 3 Protocols

Riding the momentum created by Aster, HumidiFi has climbed into the top three Solana protocols, thanks to soaring demand for dark-pool trading—an execution style often used by institutional traders to avoid slippage, front-running, and visible on-chain footprints.

Unlike public DEXs or concentrated liquidity pools, dark pools (or proprietary market-maker pools) hide trade intentions and reduce exposure to bots and whale-tracking activity. This privacy advantage is quickly gaining traction.

Over the past week alone, HumidiFi recorded $8.55 billion in trading volume, with a record-breaking $1.91 billion in daily volume on September 25, its highest ever.

The protocol has also moved in tandem with ZeroFi and SolFi, although both have slowed recently—ZeroFi in particular is hovering near all-time low volume.

A Rising Giant in Solana’s Trading Ecosystem

During high-traffic periods on Solana, HumidiFi has ranked among the top-performing DEXs—handling up to 15% of all on-chain trading volume despite not having a public retail front-end.

HumidiFi operates as a closed, single market-maker pool. It’s not permissionless, but its liquidity depth, tight spreads, and low slippage make it appealing for high-volume traders. It is especially popular for SOL/USDC trading, one of Solana’s most active pairs.

Dark Pools: A Defense Against Sandwich Attacks

Solana’s ecosystem has increasingly turned to dark-pool infrastructure to protect traders from MEV exploits like sandwich attacks. Bot-driven front-running still extracts millions—more than $4 million in just 10 days—on the network.

While Raydium remains the top retail DEX on Solana, big traders and whales prefer the privacy and reduced slippage of HumidiFi and Aster-style pools. These private pools avoid on-chain broadcasting of trade intentions, making it much harder for bots or speculators to counter-trade.

Even though dark pools are hidden from public view, they still process massive volumes, proving that private liquidity is becoming a core part of Solana’s trading landscape.

Dark Pools Are Fueling Jupiter’s Growth

The surge in dark-pool activity has also boosted Jupiter, Solana’s leading liquidity aggregator and perpetuals platform. Jupiter lets users route orders through various AMMs, including the dark pools that don’t have public interfaces.

In many cases, Jupiter’s activity reflects HumidiFi’s impact behind the scenes.
On the busiest days:

  • HumidiFi accounts for up to 80% of all SOL/USDC routing on Jupiter
  • SolFi and other smaller dark pools add additional flow

Even with persistent meme-token traffic, HumidiFi is the primary source of large SOL/USDC orders inside Jupiter’s routing engine.

Dark-Pool Activity Climbs as SOL Rebounds

Dark-pool trading surged when SOL briefly dipped below $200, as sophisticated traders sought efficient, low-slippage execution. SOL has since recovered to $208.22, supported by a rise in overall liquidity.

USDC inflows have been a key factor:

  • Total stablecoin supply on Solana: 13.79B USDC-equivalent (+7.15% in a week)
  • USDC supply alone: 9.65B (+10% over the past month)

Growing liquidity naturally increases demand for SOL/USDC trading—HumidiFi’s primary strength.

Conclusion

HumidiFi’s ascent mirrors a broader shift inside Solana’s ecosystem. As demand grows for safer, more private execution with minimal slippage, dark-pool trading is moving from a niche tool to a mainstream necessity.

Following Aster’s breakout, HumidiFi is now proving that privacy-focused DEX models can compete with—and even surpass—traditional public trading venues.

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Strategy Expands Into Europe With New Stock Offering to Buy More Bitcoin

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12 hours ago

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November 27, 2025

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Michael Saylor’s company, Strategy, is taking its Bitcoin playbook to Europe. The firm announced plans to launch a euro-denominated stock offering, marking another aggressive step in its long-running mission to accumulate as much Bitcoin as possible.

On Monday, Strategy filed for the issuance of 3.5 million perpetual shares under the ticker STRE, targeting qualified investors across the European Union and the United Kingdom.

A Euro-Based Offering to Fuel Bitcoin Purchases

The purpose of the new share offering is straightforward:
Raise euros → Buy more Bitcoin → Support operations.

The perpetual shares come with a 10% annual cumulative dividend on a face value of €100, paid out quarterly starting December 31.

The offering is strictly limited to qualified EU and UK investors—not retail buyers. Strategy continues to position itself as the dominant Bitcoin-focused public company, now holding 641,205 BTC, acquired at a combined cost of roughly $47.49 billion.

Earlier in November, the company added another 397 BTC, staying true to the accumulation strategy it has followed since mid-2020. Saylor’s key model remains consistent: issue equity and debt → use the capital to expand its Bitcoin treasury.

A Model That Sparked an Industry Trend

Strategy’s blueprint has inspired a wave of imitators—firms that have raised billions to build their own crypto treasuries. Despite this rising competition, Saylor reaffirmed that the company has no intention of pursuing mergers or acquisitions, even when they appear financially attractive.

Instead, he emphasized that Strategy remains committed to its core approach:
sell digital credit, raise capital, and systematically buy Bitcoin.

Some analysts, however, are cautious. As more crypto treasury firms emerge, they warn that consolidation may eventually be necessary for long-term sector stability.

Major Financial Institutions Back the Offering

Big-name financial players are involved in running Strategy’s European share sale, including:

  • Barclays
  • Morgan Stanley
  • Moelis
  • TD Securities

The STRE share issuance represents Strategy’s latest attempt to diversify its capital-raising channels beyond traditional U.S. dollar–denominated securities.

And with Bitcoin currently trading above $104,000, the company’s holdings now reflect massive unrealized profits compared to its average purchase price.

A Company Redefining Corporate Crypto Strategy

Strategy continues to reshape how companies think about treasury management and capital allocation in the digital age. Its move into Europe reinforces its determination to access new capital markets—and convert that capital into even more Bitcoin.

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Singapore’s QCP Expands Globally With Five New Offices and Major Hiring Boost

Published

13 hours ago

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November 27, 2025

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QCP Group, a Singapore-based digital asset trading and investment firm, is rapidly scaling up its international presence after a year of significant growth. The company announced Wednesday that it has increased its workforce by 50% year-over-year and opened five new offices across Asia, the Middle East, and the United States.

QCP now employs 157 people worldwide, up from about 105 a year ago.

New Offices Across Multiple Regions

As part of its global expansion strategy, QCP has opened offices in:

  • New York
  • Abu Dhabi
  • Kuala Lumpur
  • Ho Chi Minh City

The company has also moved its Singapore headquarters into a larger space in Prudential Tower to accommodate its growing team.

QCP says the expansion is driven by rising institutional demand for digital asset trading, derivatives, and treasury solutions. Of the firm’s 157 employees, 119 are based in Singapore, reinforcing the country’s role as QCP’s primary operational base.

Regulatory Milestones Strengthen Middle East Presence

The opening of the Abu Dhabi office follows QCP’s approval from the Financial Services Regulatory Authority (FSRA) at Abu Dhabi Global Market (ADGM), where the company secured a Financial Services Permission (FSP) earlier this year.

This license allows QCP to provide regulated digital asset services—an important milestone as the firm deepens its footprint in the Middle East’s fast-growing crypto sector.

QCP also holds a Major Payment Institution (MPI) license in Singapore, giving it the ability to offer regulated digital payment token services locally.

Strategic Growth in Southeast Asia and the U.S.

The new Kuala Lumpur and Ho Chi Minh City offices expand QCP’s reach in Southeast Asia—one of the most rapidly growing regions for digital asset adoption.

Meanwhile, the company’s new office in New York, the world’s largest financial market, marks a major step in its U.S. expansion strategy.

From Regional Player to Global Derivatives Leader

Founded in 2017, QCP has grown into one of Asia’s most active players in crypto derivatives and structured products, serving hedge funds, corporates, trading desks, and high-net-worth clients.

With its expanded global team, the firm says it plans to accelerate product development and provide deeper coverage across international time zones.

QCP’s rapid growth comes as institutional interest in digital assets continues to surge worldwide—positioning the firm to compete across the world’s top financial hubs.

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