Yes, Coinbase is required to report customer digital asset transactions to the IRS starting with the 2025 tax year. Coinbase will issue a new Form 1099-DA to both users and the IRS for sales and exchanges, with documents for 2025 activity provided by mid-February 2026. This applies to US custodial users.
IRS Form 1099-DA. Starting with the 2025 tax year, Coinbase is required to issue IRS Form 1099-DA to all US customers. This new form will standardize gross proceeds and cost basis reporting from the sale and exchange of crypto.
Cryptocurrency exchanges must start sending 1099-DA forms for the 2025 tax year. If you don't receive a Form 1099-B or 1099-DA from your crypto exchange, you are still required to report all crypto sales or exchanges on your taxes.
Yes, Coinbase reports to the IRS, and this reporting is expanding significantly due to new regulations, requiring them to issue Form 1099-DA for sales/exchanges starting in 2025, reporting gross proceeds, and eventually cost basis for 2026 onward, alongside existing Form 1099-MISC for staking/rewards over $600. This means more transaction data, including sales and conversions, will be shared with the IRS, making accurate taxpayer reporting crucial.
Quick Answer: Yes, Coinbase is considered one of the safest crypto exchanges in 2025. It's fully regulated, uses advanced security like cold storage and 2FA, and is publicly listed. While it's custodial, tools like Vault and Coinbase Wallet give users more control and protection.
There are lots of crypto exchanges to choose from, and it's essential to choose one that's safe and secure. So, is Coinbase safe? Yes! Not only do we know that Coinbase is safe, we believe it's the safest and most legit platform for crypto trading in 2025.
In 2025, crypto will have a $6.8 trillion market cap and Coinbase will command $50 billion in fees, according to a bullish report put out by Monday by Hayden Capital.
Not reporting your cryptocurrency on your taxes can lead to fines, audits, and other penalties. If you haven't reported your cryptocurrency in the past, you can file an amended tax return.
Selling crypto in a year when your income is lower can reduce the taxes you owe. Gifting cryptocurrency is generally not a taxable event for the giver. Crypto IRAs allow you to hold cryptocurrency long-term while deferring or avoiding taxes.
Subpoenas allow the IRS to extract data from cryptocurrency exchanges and financial institutions to investigate tax evasion. Entities like Coinbase, Circle, Kraken, and Bitstamp have been directed to provide comprehensive user account information and transaction records.
Crypto Exits Surge in 2025: Momentum Builds for an Even Bigger 2026. After more than a decade of speculation about when digital‑asset companies would finally break into the public markets at scale, 2025 delivered the long‑awaited breakthrough.
A shocking study suggests that over 99% of crypto investors didn't pay taxes last year—what are the risks? In this article, we explore the study's findings and the potential consequences of not reporting crypto taxes. A new study revealed that over 99% of crypto investors did not pay crypto taxes last year.
Coinbase CEO Brian Armstrong has since said that the company has “no risk of bankruptcy” at this time and that the risk outlined in the quarterly earnings report is remote.
One-time forgiveness, officially known as First-Time Penalty Abatement (FTA), is an IRS program that allows qualified taxpayers to have certain penalties removed from their tax accounts.
If you're holding crypto, there's no immediate gain or loss, so the crypto is not taxed. Tax is only incurred when you sell the asset, and you subsequently receive either cash or units of another cryptocurrency: At this point, you have “realized” the gains, and you have a taxable event.
Common Crypto Tax Strategies
If you're a US customer who traded futures, commodities, options, and other financial instruments, you'll receive a Form 1099-B via Coinbase Taxes. Non-US customers will not receive 1099 tax forms, but can use the transaction history report to assist with any non-US tax obligations.
Common Triggers
Individuals investing in Crypto should be aware of the following common errors that may trigger IRS scrutiny: Failure to Report Crypto Assets on Form 1040: Taxpayers must answer the digital asset question each year. Leaving it blank or ignoring it, even if no transactions occurred, can raise red flags.
Coinbase Monthly Transacting Users
Coinbase defines monthly transacting users as all users with at least one transaction on the platform during a 28-day period. As of Q2 2025, Coinbase has 8.7 million monthly transacting users. That's down from 8.2 million transacting users in Q2 2024.
Tl;dr: Cyber criminals bribed and recruited a group of rogue overseas support agents to steal Coinbase customer data to facilitate social engineering attacks. These insiders abused their access to customer support systems to steal the account data for a small subset of customers.