Crypto Tax Rules: What You Need to Know About Reporting and Compliance

When you trade, sell, or even spend crypto tax rules, the legal requirements for reporting cryptocurrency gains and losses to tax authorities. Also known as cryptocurrency taxation, it’s not optional—whether you bought Bitcoin in 2017 or swapped Dogecoin last week, the IRS and other agencies are watching. Many people think if they didn’t cash out to fiat, they don’t owe taxes. That’s a myth. Every trade between coins, every NFT sale, every staking reward—it’s all taxable. The IRS treats crypto as property, not currency. That means you calculate capital gains or losses just like you would with stocks.

What makes this messy is how many crypto reporting, the process of documenting every crypto transaction for tax purposes. Also known as crypto accounting, it requires tracking purchase price, date, and value at time of sale. If you used a decentralized exchange like Sologenic or traded on Upbit Indonesia, you still need records. Wallets don’t send you 1099s. You have to build your own ledger. Tools can help, but the burden is on you. And it’s not just the U.S. Countries like Cyprus and Australia have tightened rules in 2025, requiring exchanges to report user data. Nepal and China may ban crypto outright, but underground traders still face legal risk if they try to move money out.

Don’t ignore crypto compliance, following legal standards to avoid fines, audits, or asset seizures. Also known as AML for crypto, it’s tied to anti-money laundering laws that now apply to digital assets. In Australia, platforms must get licensed by ASIC. In Cyprus, MiCA rules are reshaping how banks interact with crypto firms. Even if you’re not a business, you’re still part of the system. If you got airdrops like B2M or APAD, those are taxable income at fair market value when you received them. If you mined crypto or earned interest on DeFi platforms, that’s ordinary income. The IRS isn’t guessing—you can be audited if your reported gains don’t match exchange data.

There’s no magic loophole. Trying to hide transactions through privacy coins or offshore exchanges won’t save you. Nepal’s Muluki Criminal Code allows asset forfeiture. China’s underground traders risk everything—even if they bypassed the ban, they’re still exposed if they try to repatriate funds. And if you’re in the U.S., the IRS has matched data from Coinbase, Kraken, and even Bit2Me. They know who you are.

What you’ll find below are real reviews and guides from traders who’ve been through this. From how JPEX users got caught in regulatory crackdowns, to how Cyprus banks now handle crypto deposits, to what happens when you ignore crypto tax rules in Australia or Nepal. These aren’t theoretical warnings. These are stories from people who paid the price—and those who got it right. Whether you’re new to trading or have been holding since 2020, the rules are clearer now than ever. Ignorance isn’t an excuse anymore.