The US Internal Revenue Service (IRS) is seeking to require electronic delivery of tax forms to crypto exchange users.

Under the current rules, exchanges are required to provide paper copies of tax form 1099-DA, the IRS tax form used to document crypto transactions from a centralized exchange or broker, if users request paper forms.

The proposed new rules, slated to be published on Friday, remove this requirement and allow brokers to “terminate” their relationships with existing clients if they refuse electronic delivery of tax forms.

Additionally, the IRS proposal would also prohibit users from retroactively revoking consent for electronic forms.

The IRS requires all broker-dealers, platforms providing crypto services to users like…