“That’s not being done at scale yet, but we expect that to change in the next few years as the government is cracking down on this problem,” Lerner said. Just because your name is not publicly attached to your cryptocurrency trades doesn’t mean that the IRS can’t come after you. A digital asset is a digital representation of value recorded on a cryptographically secured distributed ledger or similar technology. If a particular asset has characteristics of a digital asset, it's treated as one for federal income tax purposes. Cryptocurrency has skyrocketed in popularity in the last several years, and so too has the IRS's scrutiny on making sure that they get paid their fair share of that tax revenue from crypto transactions. Since cryptocurrency is such a new asset class, and is at its core, very different from traditional financial products, how are gains on the digital assets taxed? What are the tax rates for cryptocurrency?

how much is cryptocurrency taxed