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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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What Drives XRP Price? Ripple Insider Highlights Liquidity Over Hype

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4 days ago

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January 10, 2026

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Greg Kidd, an early executive at Ripple and a long-time figure in the cryptocurrency space, has shared fresh insights into what truly drives XRP’s long-term relevance. Rather than focusing on short-term price fluctuations, Kidd argues that liquidity and supply dynamics are the most critical factors determining XRP’s role and sustainability within the global financial system.

According to Kidd, XRP’s value proposition lies in its ability to function efficiently within payment infrastructure, not in speculative price movements. He believes that without deep and reliable liquidity, XRP cannot fully perform its intended purpose, regardless of how high its market price may rise.

Early XRP Investment Reflects Long-Term Conviction

Kidd revealed in a past interview that he still holds a substantial XRP position, having acquired roughly 1% of the total XRP supply more than five years ago. This investment predates the wave of institutional adoption and modern crypto market infrastructure, underscoring his long-standing confidence in XRP as a financial utility rather than a speculative asset.

His early involvement gives him a rare, long-term perspective on how real value is created within blockchain ecosystems. Kidd views XRP as a tool designed to solve liquidity challenges in global finance, not simply as a vehicle for price appreciation.

XRP’s Role as a Bridge Asset in Ripple’s Ecosystem

Kidd emphasized that XRP’s primary function is to act as a bridge asset within Ripple’s payment network. While Ripple builds enterprise-grade systems for cross-border transfers, XRP enables seamless movement of value between different fiat currencies.

He noted that XRP’s effectiveness is independent of Ripple’s corporate performance. Instead, the token’s strength lies in its ability to provide fast, cost-efficient liquidity across markets, making it suitable for large-scale transactional use.

Liquidity Matters More Than Price

A key takeaway from Kidd’s commentary is that liquidity outweighs price when it comes to XRP’s utility. High liquidity allows participants to move in and out of positions quickly, with minimal slippage—an essential requirement for institutional and cross-border payment use cases.

Kidd explained that even if XRP’s price increases, a lack of deep and efficient markets would limit its usefulness. In contrast, strong liquidity enables XRP to function as a reliable transactional instrument within the global payments ecosystem.

Supply, Demand, and Long-Term Price Potential

While liquidity is central to XRP’s role, Kidd acknowledged that supply constraints and rising demand naturally influence price over time. As adoption grows and markets mature, increased demand relative to available supply could support long-term price appreciation.

However, he stressed that any meaningful upside would be driven by real usage and sustained participation rather than speculation. In his view, price growth should be a byproduct of utility, not the primary objective.

Ripple’s Vision for Blockchain-Based Banking

Beyond XRP, Kidd has shared a broader vision for Ripple’s role in transforming traditional finance. Speaking at the XRP Las Vegas conference in June 2025, he suggested that blockchain technology could modernize legacy banking systems and integrate traditional institutions into decentralized networks.

In his current role as CEO of Vast Bank, Kidd is working on issuing FDIC-insured U.S. dollar tokens on the XRP Ledger. These tokens operate under a fractional-reserve model and aim to deliver capital efficiency, interest generation, regulatory protection, and 24/7 cross-border payment capabilities. He also plans to expand this framework to other currencies, including the British pound and the euro.

Conclusion

Greg Kidd’s perspective reinforces the idea that XRP’s long-term success depends far more on liquidity, structured adoption, and real-world utility than on short-term price action. While price appreciation may follow as markets deepen, Kidd believes XRP’s true value lies in its ability to function as a reliable bridge asset within a modernized global financial system.

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Supreme Court Decision Expands Crypto Seizure Powers in South Korea

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4 days ago

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January 10, 2026

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South Korea’s Supreme Court has delivered a landmark ruling that significantly reshapes how cryptocurrency is treated under criminal law. In a historic decision dated December 11, 2025, and made public in early 2026, the court ruled that Bitcoin held on domestic cryptocurrency exchanges can be legally seized during criminal investigations under the Criminal Procedure Act.

The ruling brings long-awaited clarity after years of legal uncertainty surrounding whether digital assets qualify as seizable property in criminal cases. The case stemmed from a police investigation into alleged money laundering, during which authorities seized 55.6 Bitcoin from an individual’s account on a local cryptocurrency exchange. The defense argued that Bitcoin, being intangible, could not be classified as property subject to seizure. However, the Supreme Court firmly rejected this argument.

In its reasoning, the court explained that “seizable property” under the Criminal Procedure Act is not limited to physical assets. Instead, it also includes electronic data and other forms of property that hold economic value. The justices concluded that Bitcoin meets these criteria, describing it as an electronic asset that can be independently managed, traded, and economically controlled. As a result, it can be confiscated when legal conditions are satisfied.

The ruling further confirmed that digital assets stored in custodial exchange wallets—such as those operated by major Korean platforms—fall within the scope of lawful seizure. This interpretation aligns with previous judicial views in South Korea, which have already recognized virtual assets as non-tangible property with real economic value.

Implications for Law Enforcement and Crypto Exchanges

This decision is expected to significantly strengthen prosecutorial powers in crypto-related criminal cases, particularly those involving money laundering, fraud, or the concealment of illegal proceeds through digital assets. By resolving a long-standing legal debate, the ruling removes a major obstacle that previously complicated enforcement actions involving exchange-held cryptocurrencies.

Legal experts note that the decision is consistent with South Korea’s broader regulatory stance on digital assets. Over the past year, authorities have increased scrutiny of the crypto sector and imposed penalties on several exchanges for violations related to anti-money laundering compliance.

While the ruling does not directly impact lawful users of cryptocurrency, it is likely to encourage exchanges to enhance their cooperation with law enforcement agencies. This may include faster response mechanisms, improved asset-freezing procedures, and stronger internal compliance systems to meet legal obligations.

Overall, the Supreme Court’s decision marks a major step forward in the legal treatment of virtual assets in South Korea. By clearly stating that Bitcoin held on exchanges is subject to seizure under criminal law, the ruling provides much-needed guidance for investigators and prosecutors. As the crypto landscape continues to evolve, this precedent is expected to play a critical role in shaping future enforcement practices within South Korea’s digital asset ecosystem.

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Hotako ($HOTA): A Meme Coin Built to Escape the Pump & Dump TrapLaunching on Pump.fun — Jan 7, 14:00 UTC

Published

6 days ago

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January 8, 2026

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In a meme coin world full of short-term hype and broken promises, Hotako ($HOTA) emerges as a refreshing exception — a project with heart, culture, and a real plan.

Born from Japan’s creative spirit and powered by a global team, Hotako is more than just a meme — it’s a full-fledged movement combining storytelling, education, and entertainment, wrapped in the charm of an anime-inspired cosmic cat from Planet Nyaru.

A Meme Coin Built with Vision

Hotako’s story revolves around a curious cat-girl from Planet Nyaru who travels to Earth to teach humans the joy of learning and exploration through fun and community.

But behind this adorable character lies a professional team with a strategic roadmap, aiming to redefine what a meme coin can achieve.

While most meme coins pump and dump — taking investor funds and disappearing, Hotako is built differently.

The team’s vision is clear: to create a meme coin that delivers real value, rewards long- term holders, and sustains investor confidence through transparency, innovation, and continuous development.

Massive Marketing & Partnerships

The Hotako team is executing one of the most comprehensive marketing strategies in the current meme coin market:

  • Top-tier KOLs and YouTube influencers onboarded globally.
  • Cross-platform marketing on Twitter (X), Reddit, Binance Square, and more.
  • Strategic partnerships with major Web3 platforms like Intract, DogWithCap, and IQAICOM and 30 plus crypto projects.
  • Community engagement campaigns, including the ongoing Hotako Meme Contest, Shilling Contest and upcoming NFTs with real rewards.
  • Upcoming billboard, CEX listing partnerships, and PR collaborations across Asia, the US, and Europe.
  • Optimized profiles on DexTools and DexScreener, including promotional boosts.
  • Paid ads across crypto media platforms.
  • Planned CoinMarketCap and CoinGecko listings.
  • Listings on top discovery platforms.
  • Upcoming CEX, billboard, and global PR collaborations

These efforts ensure Hotako reaches audiences far beyond typical meme coin boundaries — connecting both casual users and serious Web3 investors.

Launching on Pump.fun 7th January 2026 at 14:00 UTC

The official launch of $HOTA will take place on 7th January 2026 at 14:00 UTC, exclusively on Pump.fun.
Don’t miss your chance to join early — the Snack Squad is growing fast.

Hotako is gearing up for its official debut on Pump.fun, one of Solana’s most active and transparent launch platforms, ensuring a fair and open entry for all investors.

But the Pump.fun launch is just the beginning. The roadmap ahead includes:
• CEX Listings
• NFT Collections & Airdrops
• Interactive “Snack Missions” & Nyaruverse Expansion
• Global collaborations with AI, Gaming, and Web3 communities

$HOTA — Where Memes Meet Meaning.

Hotako NFTs — Rewarding Long-Term Holders

Following launch, Hotako plans to introduce limited NFTs tied to its Nyaru universe. These collectibles will be airdropped to the top 100 long-term holders as a way to recognize early belief and community commitment.

Redefining the Meme Coin Meta

Hotako’s approach combines humor, culture, and strategy — but with investor value at its core.

The team’s goal is to build a meme coin that lasts, one that grows stronger over time instead of collapsing after launch. By aligning storytelling with community-driven token utility and consistent marketing execution, $HOTA aims to prove that meme coins can be both fun and financially rewarding.

“Hotako represents a new kind of meme movement — one that respects investors, builds trust, and focuses on sustainable growth,” said a project spokesperson. “We’re not here for a quick pump; we’re here to build a lasting legacy.

🌐 Official Links

Website: https://hotako.fun
Twitter (X): https://x.com/HOTA_Adventure
Telegram: https://t.me/HOTA_Adventure
Instagram: https://www.instagram.com/hota_adventure/
Tiktok: https://www.tiktok.com/@hota_adventure

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