Over Half of Crypto Users Don’t Understand Tax Rules, Survey Finds:Coinbase

A new survey conducted by Coinbase and CoinTracker found that more than half of crypto users lack a clear understanding of how digital asset taxes work. The 2026 Crypto Tax Readiness Report showed that only 49% of respondents correctly recognized that cryptocurrency becomes taxable whenever it is sold. Meanwhile, nearly a quarter mistakenly believed that simple transfers between wallets trigger taxable events.

The survey, conducted in late 2025 among 3,000 US crypto users, also revealed that investors used an average of 2.5 platforms or wallets, with 83% relying on self-custodial wallets. Only 35% reported adjusting their cost basis in the past, highlighting ongoing challenges in accurately calculating capital gains.

New Reporting Rules and Cost Basis Challenges Increase Compliance Burden

Confusion surrounding cost basis reporting has intensified with the rollout of 1099-DA Form requirements. Everyday activities such as stablecoin payments and Ethereum gas fees are treated as taxable events, often generating minimal tax revenue but adding reporting complexity.

Officials expect millions of these forms to be issued, including many to users with less than $600 in proceeds. Experts note that standardized reporting could eventually improve compliance, though calculating cost basis remains difficult due to frequent transactions and asset transfers across platforms.

Disclaimer

This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.