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Tax reporting for crypto

We will deliver Forms 1099-K to U.S citizens who meet both of the following conditions:


  1. Your Digital Asset-for-USD sales on the exchange exceed 200 transactions during the calendar year, AND
  2. Your total sales proceeds from all sales of Digital Asset-for-USD exceed $20,000 during the calendar year.


If your account has met both of the thresholds above, you will receive a Form 1099-K by email from us before the end of January. An identical copy of the Account’s Form 1099-K will be filed with the IRS. 

*If you live in Massachusetts or Vermont, you will receive a Form 1099-K when your total sales proceeds from all sales of Digital Asset-for-USD exceeds $600 during the calendar year (regardless of the number of Digital Asset-for-USD sales trades executed).

*We do not provide legal or tax advice. The information herein is general in nature and should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation.


*Passfolio is the brand name of Panchain, Inc. Passfolio Securities LLC and Passfolio Financial LLC are fully-owned subsidiaries of Panchain, Inc. Securities and cryptocurrencies are very different types of assets. Cryptocurrencies are not securities. Purchasing cryptocurrencies comes with a number of risks. Please read Passfolio Financial Cryptocurrency Risk Disclosure. Currency and cryptocurrency exchange services provided by Passfolio Financial LLC (“Passfolio Crypto”), a US Money Services Business registered with FinCEN. Passfolio Financial LLC is not a broker dealer. Cryptocurrencies are not protected by either FDIC or SIPC. Securities products and services offered to self-directed investors through Passfolio Securities LLC Member FINRA / SIPC. Passfolio Securities, LLC does not provide cryptocurrency-related services. Passfolio Securities LLC is a member of SIPC, which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at www.sipc.org. To purchase securities using cryptocurrencies, you must first convert it into U.S. Dollars using Passfolio Financial LLC. You must then move the U.S. Dollar proceeds to your brokerage account at Passfolio Securities LLC where you can use it to buy securities.

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