Outside Source
As Bitcoin’s value surges, tax agencies are ramping up efforts to track crypto transactions, leaving no room for complacency.
Opinion
Opinion by: Robin Singh, CEO of Koinly
In the race between regulation and Bitcoin (BTC) all-time highs, there is no doubt tax agencies will double down on their crypto-tracking systems well before Bitcoin hits $1 million.
Crypto investors shouldn’t become complacent or assume they can skate by until the million-dollar price tag. In addition to their laser focus on the future, they are becoming skilled at scrutinizing the past. Many jurisdictions have the power to backtrack on previous years, and if tax authorities realize how much they’ve missed, they won’t just let it slide…
This could spell trouble for misinformed Bitcoiners who have already begun spending their profits.
Tax agencies will catch up through automated data-sharing
Governments are still in this weird gray area where crypto tax rules can change anytime. Take the US Internal Revenue Service (IRS), for example. In a shock move, as of 2025, the IRS now mandates that investors use the wallet-by-wallet cost tracking method, no longer allowing the universal wallet method. The latter is far more labor-intensive than the former but hands the IRS more data it craves.
Though automated data sharing with tax agencies might not be as extensive as stock market data, it’s only a matter of time before crypto data from centralized exchanges catches up. Several crypto exchanges, including Coinbase and Binance.US, issue Forms 1099-MISC to the IRS for users with more than $600 in rewards in a financial year.
This article first appeared at Cointelegraph.com News
