Only 49% of Crypto Users Understand when Taxes Apply, Survey Finds | Crypto ETF News
Crypto ETF news: Only 49% of Crypto Users Understand when Taxes Apply, Survey Finds. This update explains what changed, why it matters for institutional adoption, market flows, and investor sentiment, and what the crypto market should watch next.
Institutional And ETF Update
A majority of crypto users remain unclear on basic tax rules, with fewer than half correctly identifying when transactions become taxable, a new survey found.Only 49% of respondents correctly understand that crypto becomes taxable when it is sold, while nearly a quarter believe simple transfers can trigger tax events, according to a 2026 Crypto Tax Readiness Report published by Coinbase and CoinTracker.The findings come from a survey of 3,000 US crypto users conducted between Sept. 9 and Oct. 3, ahead of the 2025 tax reporting season.When is crypto taxable. Source: CoinbaseThe survey noted that crypto investors show a clear willingness to comply with tax rules, with 74% saying they are aware that crypto is taxable, while 65% said they have already reported activity in the past. “This refutes the misconception of widespread crypto tax avoidance,” the survey states.Related: Brazil’s finance minister shelves crypto tax policy due to election: ReportNew IRS rules complicate tax reportingThe survey also pointed to some key challenges complicating crypto tax reporting. For one, crypto investors often hold assets across multiple platforms, with an average of 2.5 wallets or exchanges and 83% using self-custody. This fragmentation makes it harder to track cost basis, which is needed to calculate gains and losses.New reporting rules add to the challenge. From the 2025 tax year, brokers will issue Form 1099-DA but won’t include cost basis, leaving users to reconcile transactions themselves across platforms that don’t share data.56% of crypto users say their knowledge of crypto tax reporting is good. Source: CoinbaseDespite these challenges, most users rely on traditional tools. Around 78% use general tax software and 52% turn to accountants, while only 8% use crypto-specific tax services. At the same time, interest in AI is growing, with nearly half of respondents saying they would use it to calculate taxes and 30% open to relying on it for the entire process.Related: US lawmakers publish crypto tax proposal without Bitcoin tax exemptionIRS moves to mandate digital crypto tax formsEarlier this month, the IRS proposed new rules that would require crypto exchanges to deliver tax forms electronically, removing the option for paper copies. Under the proposal, brokers could end relationships with users who refuse digital delivery, and users would no longer be able to withdraw consent once given.Exchanges must continue issuing Form 1099-DA to report transaction proceeds, though cost basis tracking will remain the responsibility of investors.Magazine: Clarity Act risks repeat of Europe’s mistakes, crypto lawyer warnsCointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy https://cointelegraph.com/editorial-policy
Why This ETF News Matters
First, this development may affect institutional demand, exchange flows, market liquidity, and broader investor confidence. In addition, it may influence custody trends, fund positioning, and future crypto product approvals. As a result, traders and investors should watch the next moves closely.
What To Watch Next
Watch for filing updates, approval decisions, inflow and outflow data, custody changes, and asset manager commentary. In particular, any new developments involving BlackRock, Grayscale, Fidelity, or major spot ETF products could directly affect the broader crypto market.
