When you buy, sell, or trade cryptocurrency in the US, the IRS, the US tax authority that now treats crypto like property, not currency. Also known as the Internal Revenue Service, it tracks every transaction through exchange reports, blockchain analysis, and third-party data sharing. This isn’t optional. If you didn’t report crypto gains in 2024 or earlier, you’re already at risk.
Crypto tax evasion, the act of hiding crypto income from the IRS. Also known as unreported crypto gains, is a federal crime that can land you in jail for up to five years and cost you $250,000 in fines. The IRS doesn’t guess—you’re being watched. Exchanges like Coinbase and Kraken now send 1099 forms directly to the IRS. Even small trades under $600 are tracked. There’s no more hiding behind "I didn’t know"—the law changed in 2023, and enforcement kicked into high gear in 2025. This isn’t about being rich. It’s about being honest. A college student who sold $2,000 in Bitcoin last year and didn’t file is just as exposed as a day trader with six-figure profits.
Crypto regulations 2025, the new wave of US rules forcing exchanges to collect user data, report transactions, and block unverified accounts. Also known as crypto compliance standards, these rules are reshaping how Americans interact with digital assets. Trading on unregulated platforms? You’re on your own. The IRS doesn’t care if your exchange doesn’t report—if you made a profit, you owe taxes. And if you use DeFi, bridge tokens, or stake coins, those are taxable events too. There’s no gray area anymore. The shift isn’t about stopping crypto—it’s about bringing it into the same system as stocks, real estate, and wages. You don’t need a CPA to file, but you do need records: dates, amounts, USD values at time of trade, and wallet addresses.
What you’ll find below are real cases, real penalties, and real advice from people who’ve been through it. No fluff. No theory. Just what happens when the IRS comes knocking—and how to make sure it doesn’t.
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