Understanding Crypto Exchanges and IRS Reporting in 2026

amebo · February 19

Which exchanges report to the IRS?

Most U.S.-based exchanges or those serving U.S. residents send transaction details to the IRS. International exchanges that do not operate in the U.S., as well as decentralized exchanges (DEXs) like Uniswap or PancakeSwap, typically do not report directly. Peer-to-peer platforms also often avoid reporting. However, this does not remove the legal responsibility to report your crypto activity.

Do I still need to pay taxes?

Yes. All U.S. taxpayers must report worldwide crypto income and gains, even if the platform does not send IRS forms. This includes income from mining, staking, airdrops, or selling crypto. Non-reporting exchanges do not give legal tax exemptions. Using these platforms without reporting can lead to audits, penalties, and even criminal charges for tax evasion.

How can the IRS track crypto activity?

Even if you use a DEX or a non-U.S. exchange, blockchain transactions are visible on public ledgers. The IRS uses analytics tools to link wallet addresses to identities, especially when crypto is converted to cash or sent to U.S.-linked accounts.

What should I track for taxes?

Keep records of every transaction, including the date, amount, type of trade, and value in USD. Document all incoming crypto from rewards, airdrops, or compensation. This ensures accurate reporting even if you do not receive a 1099 form.

How do I know if an exchange reports?

Check the platform’s location, terms of service, and KYC requirements. U.S.-focused platforms almost always report, while some international or decentralized platforms may not. Regardless, reporting your crypto activity is always your responsibility.
https://www.bitget.com/academy/which-crypto-exchanges-do-not-report-to-irs