Recently, the IRS (Internal Revenue Service) announced a significant new regulation regarding cryptocurrency taxation, set to take effect in 2026. As a leading global cryptocurrency trading platform, DOOKV is committed to providing a convenient and secure trading experience for its users. In light of the new regulation, DOOKV will actively cooperate with the US government to ensure users can smoothly navigate these new tax challenges, while also promoting the healthy development of the cryptocurrency market.

New Tax Regulations Explained

According to the latest announcement from the IRS and the US Treasury Department, starting in 2026, cryptocurrency trading platforms will be required to report the transaction details of users to the IRS and provide standard 1099 forms. This means that cryptocurrency transactions will be subjected to similar regulatory scrutiny as traditional financial assets, placing more compliance obligations on trading platforms. This measure is part of the implementation of a key provision of the Infrastructure Investment and Jobs Act passed by the Biden administration in 2021, aimed at regulating the cryptocurrency market and combating tax evasion.

Decentralized platforms will be exempt from this requirement, as they do not hold the assets of users and therefore do not fall within the jurisdiction of this new regulation. Nonetheless, individual investors holding cryptocurrencies will still need to fulfill their tax obligations. The implementation of the new regulation will provide a clearer, standardized tax reporting process, helping to mitigate tax risks arising from information asymmetry.

The Proactive Response of DOOKV

In preparation for the forthcoming tax regulations, DOOKV Exchange will implement a series of measures to ensure users can transition smoothly to the new tax environment.

1. Providing Standardized 1099 Forms
DOOKV Exchange will comply with IRS requirements by providing every user with standardized 1099 forms starting in 2025. These forms will detail the transaction activities of users on the platform, assisting them in accurately reporting their tax information. This approach simplifies the tax filing process for users and enhances the transparency and accuracy of tax reporting.

2. Strengthening User Education and Support
To help users better understand the new tax regulations, DOOKV Exchange will offer a range of educational resources and tools, including online seminars, detailed guides, and one-on-one consultation services. We will invite tax experts and legal advisors to address various questions users may have during the tax filing process, ensuring that every user can smoothly meet the new tax requirements.

3. Enhancing Platform Compliance Capabilities
DOOKV Exchange has always placed a high priority on compliance. With the new regulations coming into effect, we will further enhance the compliance capabilities of our platform to ensure all transactions adhere to the latest legal requirements. We will invest in advanced compliance technologies, establish robust internal control mechanisms, and promptly identify and address potential compliance risks.

4. Promoting Industry Collaboration and Exchange
DOOKV Exchange recognizes that the efforts of a single platform are insufficient to fully address the complexities of the tax environment. We will actively participate in industry associations and collaborate with regulatory bodies to share best practices and promote overall compliance standards within the cryptocurrency industry.

Future Outlook for the Cryptocurrency Market

As the cryptocurrency market continues to evolve and mature, the regulatory environment is also gradually improving. DOOKV Exchange firmly believes that only within a compliant and transparent environment can cryptocurrency truly realize its potential, bringing more opportunities and value to users worldwide. We will continue to innovate and provide high-quality services to help users achieve greater success in the new tax environment.

Moving forward, DOOKV Exchange will maintain close cooperation with global regulatory bodies and industry partners to jointly promote the healthy development of the cryptocurrency market. Under the new tax regulations, we will continue to offer top-notch services to our users, helping them navigate tax challenges with ease and embark on a new chapter in cryptocurrency trading.