Do you have to disclose cryptocurrency? Reporting Crypto Income
Regardless of how it’s earned, you’ll need to record the value of the crypto in U.S. dollars when it’s received and report that income on your tax return.
Is there a governing body for cryptocurrency? The Securities and Exchange Commission (SEC) has brought dozens of crypto-related enforcement actions in the past few years. So has the Commodity Futures Trading Commission (CFTC).
Can cryptocurrency transactions be traced? Bitcoin transactions can be traced, as demonstrated by the recent bust in Manhattan as well as last year’s Colonial Pipeline hack, in which authorities were able to recoup some of the ransom payment from the attackers.
Can you subpoena crypto? But, in the case of Bitcoin and other cryptocurrencies, who can be subpoenaed? Cryptocurrencies by their very nature exist on a peer-to-peer network that is not held by any one individual. There is no holder of the asset to subpoena. But, you can subpoena cryptocurrency exchanges for the records of transactions.