Cryptocurrency Tax: Rules, Reporting & Global Strategies

When dealing with cryptocurrency tax, the set of tax obligations that arise from buying, selling, mining, staking or receiving digital assets. Also known as crypto tax, it touches everything from ordinary income to capital gains and even foreign reporting requirements.

One of the first hurdles many face is the FBAR, the FinCEN Form 114 that US taxpayers must file for foreign crypto accounts exceeding $10,000. Failure can trigger $100,000 penalties, so cryptocurrency tax compliance starts with understanding FBAR filing thresholds. Another core piece is capital gains tax, the tax on profit when you sell a crypto asset for more than its cost basis. In many jurisdictions, short‑term gains are taxed as ordinary income, while long‑term gains may enjoy lower rates – a distinction that directly shapes your trading strategy.

Key tax concepts you need to know

Beyond FBAR and capital gains, mining tax regimes, the rules that dictate how mined coins are treated for income and expense purposes add another layer. Countries like Kazakhstan and Georgia offer low tax rates for miners, while others impose hefty corporate‑style taxes. This means cryptocurrency tax encompasses mining tax regimes and influences where miners set up operations. Additionally, tax residency, the legal domicile that determines which country's tax laws apply to you can unlock exemptions – Singapore, for example, charges no capital gains tax on crypto, and El Salvador treats Bitcoin gains as tax‑free. Understanding your residency status requires careful assessment of local laws and physical presence rules.

Regulatory shifts also play a big role. In 2025 the US introduced the CLARITY and GENIUS Acts, redefining digital commodities and stablecoins, which in turn changes reporting forms and rates. Cryptocurrency tax requires staying up‑to‑date with legislative changes because a new rule can turn a previously tax‑free activity into a taxable event overnight. Similarly, the EU’s MiCA framework is pushing for standardized reporting across member states, making cross‑border compliance more predictable but also more uniform.

Practical steps to stay compliant are straightforward. First, keep a digital ledger of every transaction – purchases, sales, swaps, airdrops, staking rewards and mining payouts. Second, categorize each event: income, capital gain, or expense. Third, calculate cost basis using either FIFO, LIFO or specific‑identification methods; the choice affects your taxable profit. Fourth, file the appropriate forms: Schedule D for US capital gains, FBAR for foreign holdings, and local tax returns for your jurisdiction. Finally, consider professional advice if your activity spans multiple countries – a tax consultant familiar with crypto can save you from costly mistakes.

The posts below dive deeper into each of these topics. You’ll find a step‑by‑step guide to FBAR penalties, a comparison of capital‑gains‑free jurisdictions like Singapore and El Salvador, a ranking of mining‑friendly countries for 2025, and practical tips for handling airdrop income. Whether you’re a casual trader, a full‑time miner, or a crypto‑focused business, the collection gives you the tools to navigate the complex world of cryptocurrency tax without getting lost in legal jargon.