It took the IRS four years to finalize its cryptocurrency regulations, but crypto tax reporting is here.

Starting with the 2025 tax year, custodial crypto platforms must report digital asset transactions on new IRS Form 1099-DA. The first Form 1099-DAs must be filed by March 31, 2026, if e-filing (March 2, 2026, if filed on paper).

Starting in 2026, custodial brokers must report the cost basis of digital assets, which will make it much easier for crypto owners to calculate their capital gains and losses and will make it easier for the IRS to determine whether crypto owners underreport their gains on their tax returns.

Here’s what you need to know now.

Tax Reporting by Custodial Brokers

The final IRS digital asset custodial regulations apply to digital asset brokers1 who take custody (possession) of the digital assets that are exchanged by their customers.

The majority of crypto transactions use these brokers. These include the following:2

Operators of centralized digital asset trading platforms. These include Coinbase, Bybit, and Binance—when a user buys or sells crypto on these exchanges, the platform holds the private keys and effectively acts as a custodian.

Hosted wallet providers. Also known as “custodial wallets,” these act like a bank account for crypto.

Digital asset kiosks. These are physical electronic terminals or kiosks that accept crypto in return for cash, stored-value cards, or different ... Log in to view full article.