Key Highlights
- Over half of U.S. crypto investors misunderstand tax rules, showing a growing gap as digital asset adoption expands.
- Confusion around taxable events and cost basis tracking continues despite most users trying to stay compliant.
- Global crypto tax policies diverge as U.S. debates stall and countries like Korea and Turkey take different paths.
More than half of U.S. cryptocurrency investors don’t fully understand basic tax rules, a new survey shows. The 2026 Crypto Tax Readiness Report by Coinbase and Cointracker found that only 49% of users know crypto is taxable whenever it is sold.
Meanwhile, nearly a quarter wrongly believe that simply moving crypto between wallets or accounts triggers a tax. The survey, which included 3,000 U.S. crypto holders from September to October 2025, highlights a significant gap in knowledge as digital assets become more widely used.
Most crypto users want to follow tax rules. The report shows 65% have already reported crypto activity, while 15% haven’t had any taxable transactions yet. Even so, many remain confused about what counts as a taxable event and how to track cost basis.
“The story this data tells is one of uncertainty,” said Lawrence Zlatkin, Coinbase’s Vice President of Tax. “Our goal is to help users reconcile unknown cost basis data, understand their requirements, and file accurately with confidence.”
Gaps in knowledge and cost tracking
The survey shows that many crypto users don’t fully understand what triggers taxes. Only 49% correctly say that selling crypto is taxable, while 41% wrongly think transfers to a bank account count. Another 36% believe profits over certain thresholds trigger taxes, and 31% think converting crypto does.
Moving crypto between wallets adds to the confusion: 71% have done it, but only 35% adjust their cost basis properly. Shehan Chandrasekera, Head of Tax Strategy at CoinTracker, said, “users are responsible for correctly computing their cost basis, holding period and actual gains or losses. This cost basis issue is uniquely hard to solve, and that’s why the right crypto tracking technology and data is key for tax compliance.”
Most users still rely on traditional methods to file taxes. About 78% use general tax software, and 52% turn to accountants.
Global policy moves and legislative challenges
Tax confusion isn’t just a U.S. problem. In South Korea, lawmakers proposed ending crypto taxes in 2027, citing concerns over double taxation.
Meanwhile, U.S. discussions hit a snag when storms delayed a congressional roundtable originally set for March 17. Senators Steve Daines, Cynthia Lummis, and Representative Mike Carey were scheduled to attend.
These developments highlight the need for simpler crypto tax rules. As digital assets become more common, investors need clear guidance and practical tools to follow the law. Without this clarity, mistakes could be costly and may discourage people from using or investing in crypto.
Also Read: South Korean Gangster Sentenced to 8 Years for Crypto Fraud Case
