We are not an exchange. We just help customers pay merchants in crypto. Can Form 1099-DA still treat us like a broker?
Our product is a payment-processing layer for merchants. Customers send digital assets to us, and we settle with merchants in cash or other digital assets. The product team keeps insisting that because we are not a trading venue, broker reporting should not apply. The tax team is less sure.
What I need is the IRS definition, not a branding answer. If a processor of digital asset payments can still be a broker under the 1099-DA rules, we need to redesign onboarding and reporting before volume gets larger.
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