Revised IRS rules unsettle US crypto investors; exchanges must disclose client information.
Revised transparency rules from the IRS have unsettled American crypto investors. The new tax regulations now require exchanges to disclose client information.
The declaration form titled “Income from Digital Assets Received from Brokerage Transactions” (1099-DA) will come into effect for the 2026 calendar year.
Brokers will send this document to both the IRS and the taxpayer. It accounts for digital asset transactions, from investment amounts to profits or losses incurred.
This form must be completed by all US-licensed crypto exchanges like Coinbase for each client.
According to a survey by Awaken Tax among 1,000 crypto investors, most expressed concern over the drastic shift from self-reporting to automatic transaction reporting.
Andrew Duka, the company’s founder, described the new tax rules as a “blunt instrument” crafted by lawmakers unfamiliar with cryptocurrencies.
“This means cryptocurrencies are treated like stocks, although they are a different asset class. Real crypto users move funds between multiple wallets and interact with DeFi protocols using rather complex trading strategies,” noted Duka.
Platforms like Coinbase provide information only on sales income and cannot report the tax basis for a specific digital asset, which typically includes the purchase price and acquisition costs.
Duka added that the responsibility to “fill in” missing information falls on the holder through the updated Form 8949. Reddit users have already begun sharing tips on how to conveniently account for data from trading platforms.
