Nearly one-third of crypto investors don’t report digital assets on their taxes

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.