Coinbase: IRS 1099-DA rules dey cause confusion for reporting and dey increase compliance costs

Coinbase talk say di new IRS rule for crypto tax (Form 1099-DA) go cause wahala for operations and confuse exchanges plus retail traders. Di 1099-DA rule wey dem finalize for 2024 and go start for transactions from 2025 (forms dem dey expect for 2026 tax season), dey require custodial brokers to report gross proceeds from some digital-asset sales and exchanges. Coinbase warn say exchanges many times no get correct cost-basis data because assets dey move between wallets and platforms, so if dem report gross proceeds first without cost basis, e go force traders to calculate acquisition costs by themselves and e fit give misleading tax records. Coinbase also point out gbege wey go pain: compulsory reporting of stablecoin transactions (e.g. USDC) even though dem peg to dollar, inclusion of small gas fees and tiny retail trades wey no get real taxable effect, and higher compliance costs to build new tracking and reporting systems. IRS choose to roll am out in phases wey allow reporting proceeds without gains/losses initially and dem remove proposal to extend broker reporting broadcast to DeFi platforms. Coinbase plan customer education and to add cost-basis calculation tools later. For traders: expect short-term admin wahala, more personal tax work and record reconciliation, possible more tax-related customer support and account activity, and extra compliance costs for exchanges wey fit affect fee structures or service workflows.