Discover Crypto Exchanges the IRS Won’t Know About

which crypto exchanges do not report to irs


Cryptocurrencies have become an increasingly popular and highly sought-after asset class in recent years. While the regulation of digital currencies is still being worked out on a global basis, in the United States the IRS has laid out certain tax obligations for users of these digital assets. With these regulations in place, it is important for users of cryptocurrencies to understand which cryptocurrency exchanges do not report to the IRS.

With more and more exchanges opening up around the world, it can be difficult to keep track of which ones report to the tax agency. This guide will provide a comprehensive overview of this topic including definitions of key terms, an overview of crypto tax reporting and the IRS, how crypto exchanges can report to the IRS, which exchanges do not report to the IRS, security considerations, understanding tax deductions, tax benefits of not reporting to the IRS, where to get further help, tips and tricks, a conclusion and resources for further reading.

Definitions of Key Terms

In order to understand what crypto exchanges do not report to the IRS, it’s important to define two key terms: cryptocurrencies and the Internal Revenue Service (IRS).

Cryptocurrencies are digital or virtual currencies that use cryptography for security. They are decentralized, meaning that they are not issued or regulated by a central authority like a government or bank. Bitcoin is the most well-known cryptocurrency, but there are many others such as Ether, Litecoin, Ripple, and Monero.

The Internal Revenue Service (IRS) is the federal agency responsible for collecting taxes in the United States. It is responsible for enforcing tax laws, and ensuring that individuals and businesses pay their fair share of taxes.

An Overview of Crypto Tax Reporting and the IRS

Cryptocurrency is treated similarly to other investments and assets when it comes to taxes. The US Internal Revenue Service (IRS) requires individuals and businesses to report gains or losses resulting from cryptocurrency transactions on their taxes.

The IRS considers cryptocurrency to be a “”property,”” rather than a currency, and so any income, gains, or losses from trading or exchanging crypto must be reported just like any other type of property investment. Any cash received from selling or exchanging cryptocurrency must be reported as ordinary income; any gains/losses from buying and selling crypto in the same year must be reported as capital gains; and if crypto is held for more than one year, any income resulting from the sale must be reported as long-term capital gains.

It’s important to note that cryptocurrency transactions are subject to the same rules regarding taxes as any other type of capital transaction. While the IRS has relaxed some of the reporting requirements for small amounts of crypto, taxpayers must still report any gains resulting from transactions above a certain threshold.

Cryptocurrency exchanges are required to report certain information to the Internal Revenue Service (IRS). This information is provided to the agency to help them assess taxes related to digital currency transactions. These transactions may include crypto-to-crypto trades, as well as fiat-to-crypto and vice versa.

The information that cryptocurrency exchanges provide to the IRS will depend on the type of exchange. For example, custodial exchanges such as Coinbase and Gemini will provide customer data, including name, address, social security number, and other information related to their customers’ transactions. This data can be used to track transactions and identify individuals who owe taxes.

Non-custodial exchanges such as Binance and Kraken do not collect personal information from customers, so they are not required to provide it to the IRS. However, they are still required to provide data related to the transactions taking place on their platform. This includes records of the wallet address involved in the transaction, the amount, types of crypto assets traded, and the date and time of the transaction. This data helps the IRS understand the tax liabilities of those conducting transactions on the platform.

Which Crypto Exchanges Do Not Report to the IRS?

Figuring out which crypto exchanges do not report to the IRS is an important part of staying compliant with US tax law. While many crypto exchanges may have a policy in place to inform the IRS of certain transactions and activities, some exchanges have chosen to remain anonymous and will not report your activity to the IRS.

These exchanges typically require less verification from users than regulated exchanges, making them appealing for those who value privacy or want to stay off the radar. However, using exchanges that don’t report to the IRS could mean you miss out on deductions when filing your taxes. So, it’s important to know which ones don’t report before you make any decisions.

The most popular crypto exchanges that do not report to the IRS include:

  • Binance
  • Kraken
  • Bitfinex
  • BitMEX
  • Huobi Global
  • Coinbase Pro

While these exchanges are the among the largest crypto exchanges by volume, there are many smaller exchanges that also do not report to the IRS. It’s important to research each exchange before you trade, to make sure it doesn’t report your activity to the IRS.

Security Considerations

When it comes to using crypto exchanges that don’t report to the IRS, there are always potential security risks to consider. While you may be able to save money on taxes by not reporting, there is always the risk that your identity could be compromised or your funds could be lost. Additionally, you may not be entitled to certain tax deductions if the exchange doesn’t report your transactions to the IRS.

One of the biggest risks when using an exchange which does not report your activity to the IRS is that you could be subject to identity theft. For example, if your account information is compromised, someone else could use your identity to make unauthorized transactions. Additionally, if the exchange does not keep records of your transactions, then it becomes harder to track any potentially fraudulent activity.

Another security risk is the potential for losing your funds. Since the exchange is not providing any protection from cybercrime and other Internet-based threats, your funds may be vulnerable to hackers, malicious software, or other external threats. In addition, if the exchange does not provide any customer service support, it can be difficult to recoup any losses.

Finally, it’s important to understand that if you use a crypto exchange which does not report to the IRS, you may not be eligible for certain tax deductions. This could leave you with less money in your pocket at the end of the year, so be sure to do your research before using an exchange which does not report to the IRS.

Understanding Tax Deductions

When using an exchange which does not report to the IRS, it is still important to understand tax deductions. You may be able to take advantage of special tax deductions when trading cryptocurrency.

The IRS requires crypto traders to itemize their deductions if they want to take advantage of them. This includes any expenses related to trading, like fees or commissions paid to exchanges. It also includes any costs related to buying and selling digital assets such as equipment, software, or storage.

When filing taxes, you must provide proof that these expenses were paid. This means keeping records of all your transactions along with invoices, receipts, and other documents.

You can also deduct any losses incurred from your crypto trading activities, such as bad trades or investments. To do this, you must prove that these losses were real and properly documented.

Finally, there are special tax deductions available for those who contribute to certain charitable organizations which accept cryptocurrency as donation. Before donating, make sure to check and see if the charity is eligible to receive these donations.

Overall, understanding and claiming tax deductions when trading cryptocurrencies can be complicated. If you have any questions, it is recommended that you seek professional advice.

Tax Benefits of Not Reporting to the IRS

When you use exchanges that do not report to the IRS, you may be able to take advantage of various tax benefits. Taxpayers who engage in crypto transactions through non-reporting exchanges can benefit from reporting fewer transactions and receiving fewer notices from the IRS. In addition, those who use unregistered exchanges may also be eligible for a reduction in their total taxable income.

Cryptocurrency traders may be able to take advantage of specific tax breaks, such as capital loss deductions. These deductions can help reduce your taxable income if your losses exceed your gains. Furthermore, exchanges that don’t report to the IRS may offer other benefits such as discounted trading fees.

Using exchanges that do not report to the IRS also means that you can maintain an element of privacy when carrying out crypto trading activities. As the exchanges are not required to provide information to the IRS, the agency is unable to track all of your transactions and will be unaware of your trading patterns.

Where to Get Further Help

When it comes to cryptocurrencies, taxes can be complicated. Fortunately, there are a number of resources available to help you understand tax requirements and how to use crypto exchanges that do not report to the IRS.

For general information about taxes and cryptocurrencies, you can start with the IRS website. The agency provides guidance for taxpayers on how to report their crypto activities for tax purposes.

You can also consult a tax professional who can provide personalized advice on your specific situation, such as filing taxes if you’re using an exchange that does not report to the IRS. Professionals can also help you determine whether or not you need to pay taxes on any profits from your cryptocurrency transactions.

There are also a number of websites and forums dedicated to helping crypto traders with their taxes. These sites provide up-to-date information about tax laws and regulations related to cryptocurrencies, as well as strategies for minimizing taxes when trading crypto.

Finally, there are a number of online tools available to help with filing taxes. These tools allow you to input your cryptocurrency trading data and generate an accurate tax report for the IRS.

Overall, it’s important to understand the tax requirements when trading cryptocurrencies, as well as which exchanges do not report to the IRS. With the right advice and assistance, you can ensure that you remain compliant with the law while taking advantage of the tax benefits associated with these exchanges.

Tips and Tricks for Crypto Exchanges That Do Not Report to the IRS

If you’re looking to use a crypto exchange that doesn’t report to the IRS, there are several tips and tricks you should consider. Following these guidelines will help you stay compliant with the current tax laws and get the most benefit from your investment.

  • Understand the taxable status of the cryptocurrency you purchase. You should also research the tax implications of purchasing other types of assets such as stocks, bonds, and real estate.
  • Keep track of all your transactions and maintain accurate records. This includes the date of the transaction, the amount, and any fees or taxes associated with it.
  • Take advantage of tax deductions available for your investments. If you are investing in cryptocurrency via an exchange that does not report to the IRS, you may be able to take advantage of certain deductions.
  • Be aware of any security risks associated with using an exchange that does not report to the IRS. Make sure to research the exchange and its security protocols before transferring funds.
  • Consult with a tax professional if you have any questions about your financial situation. They can advise you on the best course of action for your particular circumstances.

In conclusion, it is important to understand the current tax requirements for cryptos and how to stay compliant when using crypto exchanges. There are a variety of exchanges that do not report to the IRS, but security is always an issue with them. It is important to take into consideration the tax deductions available when using an exchange that does not report to the IRS and the potential tax benefits of using such an exchange. Lastly, there are plenty of resources available for those interested in finding out more information and advice concerning taxes and exchanges that don’t report to the IRS.


If you are looking for more information on crypto tax reporting and which exchanges do not report to the IRS, please find below a list of useful resources.

FAQs about Crypto Exchange Tax Reporting and the IRS

  • Q: What are cryptocurrencies?
    A: Cryptocurrencies are digital assets that use cryptography for secure transactions, and can be used as a medium of exchange or a store of value.
  • Q: What is the Internal Revenue Service (IRS)?
    A: The Internal Revenue Service (IRS) is the government agency responsible for taxation in the United States.
  • Q: What types of information do crypto exchanges provide to the IRS?
    A: Crypto exchanges provide information on trading history, any payment or receipt of funds, and the identity of the sender and recipient of the funds.
  • Q: Which crypto exchanges do not report to the IRS?
    A: Some of the exchanges that do not report to the IRS include Binance, KuCoin, OceanEX, and HodlHodl.
  • Q: Are there potential issues with using exchanges that do not report to the IRS?
    A: Yes, there may be security considerations with using exchanges that do not report to the IRS, such as needing to identify yourself on different platforms or a potential loss of funds.
  • Q: What tax deductions are available when using an exchange that does not report to the IRS?
    A: There are tax deductions available, such as deductions for taxes paid for mining, trading, and other activities related to cryptocurrencies.
  • Q: Where can I get further help concerning taxes and exchanges that don’t report to the IRS?
    A: You can find further help from qualified professionals, such as certified public accountants or tax lawyers. You can also search online for articles, forums, and other resources to learn more about taxes and exchanges that don’t report to the IRS.
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