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Category: CRYPTO NEWS
The post “Unfair and Unjust”: Uniswap CLO Urges Challenge to IRS Ruling on DEXs appeared on BitcoinEthereumNews.com. The Chief Legal Officer (CLO) of Uniswap, Katherine Minarik, has publicly called for a challenge to the recent ruling by the Internal Revenue Service (IRS) that classifies decentralized exchanges (DEXs) as brokers under U.S. tax law. In a strongly worded statement, Minarik argued that the interpretation is fundamentally flawed and could stifle innovation in the cryptocurrency industry by imposing impractical compliance burdens on decentralized platforms. IRS Ruling Sparks Controversy Earlier this year, the IRS issued guidelines that require DEXs to report user transactions, citing a broader effort to curb tax evasion. The ruling aligns DEXs with traditional financial brokers, obligating them to comply with stringent reporting requirements. Critics, including Minarik, have pointed out that the decentralized nature of these platforms makes such compliance technically infeasible. Source: X “This ruling reflects a fundamental misunderstanding of how decentralized exchanges operate,” Minarik said during a recent industry conference. “Unlike centralized platforms, DEXs lack the ability to collect user information, which is essential for broker-level reporting.” The Broader Industry Impact The IRS’ decision has raised an uproar from all corners of the crypto community. Industry leaders say such categorization goes against the whole ‘decentralized’ ethos of blockchain. Forcing DEXs to fit into broker regulations only furthers the dissuasion of developers and users from making active contributions to a decentralized system, pushing innovation onto countries with friendlier regulatory jurisdictions. The ruling, per the Blockchain Association report, will lead to reduced liquidity and higher costs for users, thus undermining the very advantages that have driven the growth of DeFi. Uniswap Leads the Pushback As one of the largest DEXs in the world, Uniswap is at the forefront of the calls for regulatory clarity. Minarik says there needs to be an approach tailored to the unique qualities of the decentralized platforms. In cooperation with other industry players,…
2024-12-30T09:30:13+00:00
https://bitcoinethereumnews.com/tech/unfair-and-unjust-uniswap-clo-urges-challenge-to-irs-ruling-on-dexs/?utm_source=rss&utm_medium=rss&utm_campaign=unfair-and-unjust-uniswap-clo-urges-challenge-to-irs-ruling-on-dexs