Overview

Click to expand overview
As a crypto investor using any of the crypto exchanges and crypto wallets, you’re fully responsible for reporting your taxable crypto earnings to the Internal Revenue WASHINGTONThe Internal Revenue Service today reminded taxpayers that they must again answer a digital asset question and report all digital asset related income Does Crypto.com report to the IRS? If you registered with Crypto.com as a resident of the United States, then starting in the 2025 tax year, the exchange is required to

Does Crypto.com Report to the IRS? What Crypto Investors Need to Know

As a crypto investor using any of the crypto exchanges and crypto wallets, you’re fully responsible for reporting your taxable crypto earnings to the Internal Revenue Service (IRS). Understanding whether exchanges like Crypto.com report your activity is crucial for staying compliant and avoiding potential penalties.

The IRS and Crypto: What to Expect

WASHINGTON—The Internal Revenue Service today reminded taxpayers that they must again answer a digital asset question and report all digital asset related income. This reinforces the IRS's increasing scrutiny of cryptocurrency transactions. It's more important than ever to keep accurate records of your buys, sells, and trades.

Does Crypto.com Share Information with the IRS?

Does Crypto.com report to the IRS? If you registered with Crypto.com as a resident of the United States, then starting in the 2025 tax year, the exchange is required to report your activity under new regulations. This means Crypto.com is obligated to send you and the IRS a 1099-MISC or similar form detailing your earnings and losses. While this new regulation goes into effect in 2025, you are still responsible for declaring all activity before that period.

Your Responsibilities as a Crypto Investor

Even if Crypto.com (or any other exchange) doesn't automatically report your transactions to the IRS for prior tax years, you are still legally obligated to report all taxable events. This includes:

  • Selling cryptocurrency for fiat currency (USD, EUR, etc.)
  • Trading one cryptocurrency for another
  • Earning rewards or staking income
  • Using cryptocurrency to purchase goods or services

Failure to report your crypto earnings can result in penalties, so it’s essential to maintain thorough records and consult with a tax professional if you're unsure how to properly report your crypto activity.

Staying Compliant with Crypto Taxes

Here are a few tips to help you stay on top of your crypto taxes:

  • Keep detailed records: Track all your crypto transactions, including dates, amounts, and fair market values.
  • Use crypto tax software: Consider using specialized software to help you calculate your capital gains and losses.
  • Consult with a tax professional: Seek guidance from a tax advisor who understands cryptocurrency taxation.

Staying informed about IRS regulations and diligently tracking your crypto activity will help you ensure compliance and avoid potential tax issues.

Top Sources

Related Articles