Digital Asset Tax Withholding

Updated IRS guidance requires a 7% to 10% withholding on activity involving digital assets held with platforms subject to US reporting — staking yield, redemptions, transfers, and sales. It does not depend on which platform you use, how your assets are held, or who your custodian is — every investor should understand what this means.

• •When does withholding apply, and which types of transactions trigger it?
• •How much is withheld, and who reports it?
• •What does it look like on your year-end tax documents?
• •What should you review before making any moves with your holdings?