In 2025, a significant change is coming for individuals involved in buying and selling digital assets like bitcoin. For the first time, crypto transactions will be subject to third-party reporting requirements, meaning that information on these transactions will be sent to the IRS. This will apply to transactions conducted in custodial accounts on centralized crypto trading platforms such as Coinbase or Gemini.
The companies responsible for providing this reporting are brokers who handle the digital assets being sold by their customers. These brokers include operators of custodial digital asset trading platforms, certain digital asset hosted wallet providers, digital asset kiosks, and certain processors of digital asset payments (PDAPs), as noted by the IRS.
