A number of new crypto regulations are coming down the pipeline, with some taking effect in 2025 and others expected to go into effect as soon as this month.

The US Treasury Department has just approved a new rule that will require reporting from cryptocurrency brokers as well as crypto exchanges. They will have to give the government information on any exchanges and sales of tokens and digital assets that they make, reporting directly to the Internal Revenue Service (IRS).

This is supposed to help fight tax evasion, and the US government is concerned that many people are currently avoiding taxes on their digital asset purchases. The new rule is expected to help the government bring in an additional $28 billion for the next 10 years. The rule will go into effect for the 2026 tax season, meaning that changes will have to start collecting data as early as 2025.

European Crypto Regulations

This is not the only new regulation coming down the pipeline. The European Union is rolling out  new crypto regulations under the MiCA law. That stands for the markets in Crypto-Assets Regulation, and it has already started to go int effect as of the last day of June. More regulations will be instituted by the end of 2024, and more countries in the European Union will begin rolling out their amended version of the MiCA regulations.

The major change to go into effect with these new regulations is the licensing of cryptocurrency exchanges and assets. These all need to fit into the new regulations and be able to show proper licensing and paperwork, otherwise the respective governments of the EU will be able to delist assets and shut down exchanges that are not complying.

What These New Rules Mean for the Industry

The impact of these new regulations will be felt immediately and will likely change buying habits dramatically. If purchases on the digital marketplace are all being tracked and reported, those who have avoided paying taxes on digital assets so far will think twice before making the same kinds of purchases.

New regulations for exchanges and assets in the EU will dramatically effect what kinds of products are available for the next few months as brokers and crypto companies scramble to comply. This means that some assets may be temporarily unavailable and some exchanges could be forced to pay fines until they sort out compliance issues.

All of these regulations will pave the way for more. You can be sure that governments around the world are paying attention to the new laws being issued the bring oversight to cryptocurrencies and they are considering launching some of their own in the near future.