A new survey conducted by US-based cryptocurrency exchange Coinbase and crypto portfolio tracking platform Cointracker showed that cryptocurrency investors have serious shortcomings regarding tax legislation. According to the survey, more than half of investors do not understand the basic logic of taxable transactions in digital assets.
Taxation awareness and new regulations
According to the results of the 2026 Crypto Tax Preparation Report, only 49 percent of participants correctly know that tax liability arises when cryptocurrency is sold. About a quarter think simple transfers are also taxable. The movement of digital assets and cross-platform switching in the US makes it difficult for crypto users to properly meet their financial obligations.
The 3000 users surveyed use an average of 2.5 different platforms or wallets. While 83 percent of respondents preferred their own custody wallets, only 35 percent stated that they had adjusted the cost basis of their assets in the past. Although the concept of cost value enables the calculation of real earnings by deducting the purchase price, users seem to not have sufficient knowledge on this subject.
According to Coinbase’s statement, with the new regulation process, the company is expected to send 1099-DA forms to more than four million customers. Most of these forms cover clients with annual returns below $600. Additionally, more than 60 percent of users have missing or under-recorded cost value because asset movements occur between platforms.
“Today, every stablecoin payment, small DeFi transaction, gas fee can technically be taxed. The burden this places on ordinary users is not only burdensome but can also threaten innovation and adoption,” Coinbase explained.
Experts evaluate the effects of the new system
Matt Price, director of investigations at blockchain analysis firm Elliptic, is of the opinion that the transition to standard reporting will positively contribute to the industry in the long term. Price previously worked as a special agent with the US Internal Revenue Service (IRS) in criminal investigations related to cryptocurrencies. Price, who also managed Binance’s investigation unit, stated that he personally experienced the difficulty of accounting for payments made with crypto in terms of tax.
“You may not know how to declare this; when I was paid partially in crypto, I didn’t have a 1099 form. I had to do the accounting on my own,” Matt Price said.
With the introduction of 1099-DA forms, cryptocurrencies are being brought into the same stream as other financial products. Standard reporting will offer a similar approach to the 1099-B system used at traditional brokerages.
Although Price pointed out that the complexity brought by high transaction volume makes cost calculation difficult, he emphasized that similar situations also exist in traditional investments. Stating that investors, especially those who engage in algorithmic transactions, face similar dilemmas, Price thinks that the industry can overcome these problems over time.
