#cryptotaxes

Crypto Tax Updates 2025: Key Changes for Investors

The crypto tax landscape is evolving rapidly in 2025, with governments worldwide tightening regulations and improving tax compliance measures. Here are some of the latest updates:

1. Stricter Reporting Requirements

The U.S. IRS has introduced Form 1099-DA, which requires exchanges to report users’ crypto transactions for tax purposes starting in 2025. This will expand in 2026 to include capital gains, losses, and income details 【21】.

Investors must keep detailed records of staking rewards, NFT trades, and mining earnings to avoid penalties 【20】.

2. Wallet-Specific Accounting

Each crypto wallet must now be treated independently for tax calculations. Gains and losses cannot be mixed across wallets, making accurate record-keeping essential 【21】.

3. Safe Harbor Rule for Crypto Holders

The IRS has introduced a Safe Harbor provision, allowing taxpayers to allocate their unused cost basis across wallets by January 1, 2025, helping them avoid penalties 【21】.

4. International Trends in Crypto Taxation

Switzerland has approved an initiative to include Bitcoin in its national reserves, potentially setting a precedent for crypto-friendly policies 【22】.

Some countries are offering tax relief to long-term crypto holders to encourage investment 【23】.

5. Compliance & Audit Preparation

Investors should use crypto tax software to automate reporting and avoid common errors.

Tax professionals recommend harvesting losses before year-end to reduce taxable gains 【20】.

These updates indicate a shift toward greater transparency and enforcement in crypto taxation. Investors should stay informed, maintain clear records, and seek professional advice to ensure compliance.