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R
ronboat
February 25, 2025
Question

Do crypto trading apps have the right to collect taxes and deny access to your funds?

  • February 25, 2025
  • 1 reply
  • 0 views
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    1 reply

    J
    JamesG1
    February 26, 2025

    Backup withholding applicable to digital asset transactions may be what you are referring to.

     

    Some of the new rules may already be in place for the IRS form 1099-DA.  See here.

     

    Brokers, digital trading platforms, payment processors, and hosted wallet providers have to issue this form for all digital asset sales or exchanges starting from January 1, 2025.

     

    The new form will be issued next January for the 2025 income taxes.

     

    However, I have no idea how denying access to your funds would be involved with IRS form 1099-DA.

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