If you’re trading or earning crypto on Crypto.com, you’ve probably asked yourself if they’re telling the IRS about your activity. Crypto.com is huge in the U.S.; millions of people use it to trade, stake, and earn rewards every single day.
And let’s be real, the IRS isn’t ignoring crypto anymore. So knowing what Crypto.com actually reports (and what it skips) can really help you dodge headaches when tax time rolls around.
Here’s a straightforward look at what Crypto.com has to tell the IRS, how it affects your taxes, and why, at the end of the day, it’s on you to report everything right.
Does Crypto.com Report to the IRS?
Yes. Crypto.com reports certain user activity to the IRS. As a centralized exchange operating in the United States, it is legally required to file Form 1099 for qualifying users and send a copy to both the user and the IRS.
Forms Given By Crypto.com To Users:
Here’s a breakdown of the forms Crypto.com issues:
- Form 1099-MISC: Form 1099-MISC goes out if you earn more than $600 in staking rewards, referral bonuses, airdrops, or other types of income in a year. You get a copy, and the IRS gets one too.
- Form 1099-DA (New from 2026): Then there’s Form 1099-DA, which is new for the 2025 tax year. Crypto.com sends this if you sell, exchange, or spend digital assets. For 2025, it just shows your total proceeds, no cost basis yet. But starting with 2026, it’ll include both your proceeds and your cost basis for covered transactions.
Note: Even if you don’t get any of these forms, you still need to report all your taxable crypto activity when you file your taxes.
Also Read: How To Report Crypto on Taxes in the USA?
Is Crypto.com Legal in the USA?
Yes, you can use Crypto.com in the United States. It’s a legit, regulated Money Services Business here. They have all the necessary money transmitter licenses and comply with U.S. financial rules, including KYC and AML checks.
There is one notable exception: Crypto.com is currently unavailable in New York due to the state’s specific regulatory requirements around digital asset businesses.
A few things worth knowing about its legal standing:
- Compliance: First off, Crypto.com asks for your name, address, and Tax Identification Number because the IRS requires it. They use this info when they file 1099 forms.
- Tax Status Verification: Platforms like Crypto.com need to check if you’re a U.S. taxpayer, which means you’ll fill out a W-9 or W-8 form. If you don’t confirm your tax status, starting January 1, 2027, the IRS will take 24% of your proceeds up front, and you might not have full access to trading.
- Legality vs. Tax Compliance: Just because Crypto.com is legal doesn’t mean your taxes are taken care of automatically. You still have to report your crypto income and gains to the IRS yourself. The platform’s job is to follow the rules, they don’t handle your personal tax filing.
Do I Have to Pay Taxes on My Crypto.com Transactions?
Yes. If your activity on Crypto.com results in a capital gain or taxable income, you are required to report it to the IRS. This applies whether or not you receive a 1099 form.
Taxable Transactions to Report
- Selling cryptocurrency for USD or other fiat currency
- Trading one cryptocurrency for another
- Earning staking rewards, referral bonuses, or airdrops (especially over $600)
- Spending crypto on purchases
Non-Taxable Transactions
- Simply holding cryptocurrency
- Transferring crypto between the wallets you own
Note: While transfers between your own wallets are not taxable events, they can complicate cost basis tracking, especially when assets move between platforms.
How Crypto Reporting Works in General?
Understanding what Crypto.com reports becomes much clearer when you see how the broader system works.
KYC Requirements
Centralized exchanges like Crypto.com are required to verify the identity of their users. This means collecting your name, address, and Tax Identification Number (TIN), typically your Social Security Number or ITIN. This information is used to issue and file 1099 forms with the IRS.
Data Sharing Agreements
When Crypto.com sends you a 1099 form, they also send the same info straight to the IRS. The IRS compares what the exchange reported with what you reported on your tax return. If something doesn’t match up, your return gets flagged. You might receive a notice, such as a CP2000 letter, or face a greater risk of audit. The IRS has used 1099 data before to send warning letters to crypto investors, especially in situations where 1099-K forms caused confusion.
Blockchain Transparency and Traceability
It’s not just about what crypto exchanges report. Every crypto transaction leaves a permanent mark on public blockchains. The IRS uses blockchain analytics to track the trail, monitoring wallet activity and matching it to what exchanges share. So, moving your assets off Crypto.com doesn’t hide them. If there’s a taxable event down the road, the IRS can still track it down.
What Does This Mean for Crypto.com Users?
Crypto.com’s reporting does not take care of your tax obligations for you. Even when forms are issued, they may be incomplete, and the final responsibility for reporting accurate figures always rests with you.
Who May Be Affected?
- Income earners: If you earned more than $600 in staking rewards, referral bonuses, or airdrops, you will likely receive Form 1099-MISC. You must report this income on your return.
- Active traders: If you sold, traded, or spent cryptocurrency in 2025 or later, those disposals will be reported on Form 1099-DA. Even small transactions can appear on this form.
- All users: Even if you don’t receive a 1099 form because your activity fell below the reporting threshold, you are still required to report all taxable events.
The Cost Basis Problem
For the 2025 tax year, Form 1099-DA reports gross proceeds only, not cost basis. This means that Crypto.com reports to the IRS how much you received from a disposal, but not what you originally paid for the asset.
The burden of calculating your actual gain or loss falls entirely on you. If you transferred assets from another wallet or exchange before selling, that adds another layer of complexity.
Platform Reporting vs. Self-Reporting
There is an important distinction here: Crypto.com reports what it is required to report. But your tax obligation covers everything, including activities on other exchanges, wallets, and blockchains. Relying solely on what Crypto.com reports to the IRS is not enough to stay compliant.
Common Misconceptions Related to Crypto.com Transactions
Many crypto users assume that because the platform handles some reporting, their tax responsibilities are covered. That assumption can lead to real problems.
If I Didn't Receive A 1099, I Don't Have To Report
The $600 threshold only determines whether Crypto.com issues Form 1099-MISC. It has no bearing on your tax obligation. All taxable income and disposals must be reported, regardless of whether a form was issued. Failing to do so may be treated as tax evasion.
Crypto-to-Crypto Trades Aren't Taxable
Trading one cryptocurrency for another is treated as a disposal under IRS rules. Even if you never convert to USD, exchanging assets creates a capital gain or loss that must be reported. Starting in 2025, these transactions will also be reported on Form 1099-DA.
Moving Crypto Off The Exchange Means The IRSs Can't See It
Transferring assets off Crypto.com does not eliminate IRS visibility. Blockchain transactions are publicly recorded, and the IRS uses analytics tools to trace on-chain activity. The exchange also has the legal right and, in some cases, the obligation to share user information upon request.
No KYC means no tax responsibility
Crypto.com requires identity verification for all users. But even if a platform didn’t verify your identity, your tax obligations would still apply. Reporting requirements are based on your activity, not on whether a platform knows who you are.
Get a Crypto.com Tax Report Today
Tracking your Crypto.com activity manually is harder than it sounds, especially if you’ve transferred assets between wallets, traded across multiple platforms, or earned income from staking and rewards. Since Form 1099-DA does not include cost basis for the 2025 tax year, you’ll need accurate records to calculate your actual gains and losses. That’s where KoinX comes in.
Track Transactions Across Exchanges and Wallets
KoinX connects with Crypto.com and 800+ exchanges and wallets to consolidate your full transaction history in one place. This helps ensure that transfers, disposals, staking rewards, and other activity are all captured, reducing the risk of missing a taxable event.
Calculate Gains, Losses, and Income
KoinX automatically calculates your capital gains, capital losses, and ordinary income based on your synced transaction data. It reconciles wallet transfers to prevent double-counting and helps fill in missing cost basis when assets move between platforms.
Generate Tax-Ready Reports
Once your data is synced, KoinX generates structured reports that align with IRS reporting requirements, supporting forms like Form 8949 and Schedule D, so your figures match what the IRS may already have from Crypto.com.
To get started, connect your Crypto.com account to KoinX using secure API integration or by uploading your transaction history. Follow the step-by-step instructions in the Crypto.com integration blog to complete the setup and generate your tax report accurately.
Conclusion
Crypto.com does report to the IRS. It issues Form 1099-MISC for qualifying income and Form 1099-DA for disposals starting with the 2025 tax year. But reporting visibility is not the same as automatic compliance, and it’s far from the full picture.
The IRS receives data from Crypto.com, but it does not calculate your gains or verify that everything you owe has been reported. That responsibility sits with you. This is especially true if you trade across multiple platforms, move assets between wallets, or deal with missing cost basis information.
Using a crypto tax tool like KoinX can help you stay organized, calculate results correctly, and file with confidence. Join KoinX today and take the complexity out of crypto tax reporting in the USA.
Frequently Asked Questions
Does Crypto.com Report All Transactions To The IRS?
Not all transactions are reported automatically. Crypto.com issues Form 1099-MISC for income over $600 and Form 1099-DA for disposals starting with the 2025 tax year. However, transfers between your own wallets and holdings are not reported. Regardless of what Crypto.com reports, you are required to report all taxable activity on your return.
Do I Have To Report Crypto Earnings Under $600?
Yes. The $600 threshold determines whether Crypto.com issues a 1099-MISC, it does not determine your tax obligation. All taxable income, including amounts under $600, must be reported to the IRS on your tax return.
Can The IRS Track My Crypto.com Transactions?
Yes. The IRS receives 1099 forms directly from Crypto.com. It also uses automated matching systems and blockchain analytics tools to identify discrepancies between reported exchange data and what appears on your tax return.
Is Crypto.com Available In All US States?
Crypto.com operates in 49 states and several U.S. territories. It is currently unavailable in New York due to state-level regulatory requirements. Users in all other states can legally trade and invest through the platform.
What Happens If I Don't Report My Crypto.com Transactions?
If your tax return does not match the data Crypto.com reported to the IRS, you may receive a compliance notice, such as a CP2000 letter, or face an increased risk of audit. Failing to report taxable crypto income may constitute tax evasion, with serious legal and financial consequences.
