Nearly one-third of cryptocurrency investors fail to include their digital assets on their tax forms, according to a new study commissioned by CoinLedger and conducted by YouGov.
The study also discovered that most crypto investors don’t understand the tax implications of their transactions, with only 38% of respondents correctly identifying which types of crypto transactions constituted a taxable event. And while half of non-taxpaying crypto investor respondents admitted not paying taxes on the digital assets because the didn”™t make a profit on cryptocurrency, more than two-thirds said they either “strongly agree” or “agree” with the statement “I wish cryptocurrency exchanges gave me more information to help me report my taxes.”
“It’s no secret that tax reporting is a big problem in the crypto industry,” said David Kemmerer, CEO of CoinLedger. “The level of non-compliance may be shocking to some, but it isn’t surprising given the lack of regulatory clarity and enforcement guardrails in the space.”
The study was conducted by YouGov from Dec. 2-8, 2022, with a sample size was 305 U.S. adults who own or invest in cryptocurrency.
