Kraken Files 56M Crypto Tax Forms, Seeks Reforms

Cryptocurrency exchange Kraken disclosed on Wednesday that it filed more than 56 million tax forms with the U.S. Internal Revenue Service for the 2025 tax year, revealing that a significant portion of digital asset transactions involved minimal values and underscoring the need for reforms to ease compliance burdens.

The forms, known as 1099-DAs, were required under new federal rules mandating brokers to report gross proceeds from cryptocurrency sales and exchanges. According to Kraken, 18.5 million of these forms covered transactions worth less than $1, accounting for one-third of the total. Another 28 million involved amounts of $10 or less, representing half of all reports, while 74 percent were for values under $50. In contrast, only 8.5 percent exceeded $600, the threshold typically triggering reporting for certain types of income.

Kraken highlighted how the absence of a de minimis exemption in U.S. tax law forces users to track and report every transaction, no matter how small, as a potential capital gains event. This includes routine micropayments, such as buying a $7.99 meal with Bitcoin or sending $5 to a friend via a digital wallet. Users must calculate the cost basis...