How does FATCA affect the taxation of cryptocurrency transactions?

3 answers

• Dec 29, 2021 · 3 years ago
  FATCA requires foreign financial institutions to report information about US account holders to the IRS. This means that if you are a US citizen or resident and you hold cryptocurrency in a foreign exchange, the exchange may be required to report your account information to the IRS. This can have implications for the taxation of your cryptocurrency transactions, as the IRS may have access to information about your holdings and transactions.
  444222
• Dec 29, 2021 · 3 years ago
  FATCA aims to prevent tax evasion by US citizens and residents through offshore accounts. While cryptocurrency transactions are generally subject to taxation, FATCA adds an extra layer of scrutiny to ensure compliance. If you hold cryptocurrency in a foreign exchange, it's important to understand the reporting requirements and potential tax implications.
  356119
• Dec 29, 2021 · 3 years ago
  As a representative of BYDFi, I can tell you that FATCA has led to increased compliance efforts by cryptocurrency exchanges. Many exchanges now have procedures in place to identify and report US account holders to the IRS. This means that if you are a US citizen or resident and you hold cryptocurrency in a foreign exchange, there is a higher likelihood that your account information will be reported to the IRS.
  413104