Andrew Duca, founder of Awaken Tax, said Feb. 17 that new regulations mark ‘the beginning of the end for crypto tax avoidance not just in the US but worldwide.’ The statement comes as U.S. brokers issue the first Form 1099-DA statements for 2025 digital asset transactions and countries move forward with international data-sharing frameworks.
The rollout of mandatory Form 1099-DA reporting by digital asset brokers is a significant shift in how cryptocurrency transactions are taxed, according to an opinion column by Duca published by CoinDesk. Brokers furnished these forms to both taxpayers and the Internal Revenue Service (IRS) by February 17, 2026, marking the first year of systematic transaction data collection. The column discusses how these changes build on earlier IRS efforts, including Operation Hidden Treasure launched in 2021, according to CoinDesk.
Duca said, ‘We are entering the crypto tax enforcement era. This marks what I’d call the beginning of the end for crypto tax avoidance not just in the US but worldwide. These regulations treat cryptocurrency like stocks but crypto behaves nothing like stocks. The crypto industry needs to adapt to this reality now rather than fight or ignore it,’ according to his column published by CoinDesk.
Digital asset brokers must now report gross proceeds from sales and exchanges on Form 1099-DA for 2025 transactions while cost basis reporting expands starting with 2026 activity. This shift moves cryptocurrency taxation from voluntary self-reporting to broker-assisted automatic disclosure similar to how stock transactions are handled. The IRS can now more readily match reported data against taxpayer filings to identify discrepancies, according to the IRS.
Approximately 30 percent of American adults own cryptocurrency, representing about 70 million people and reflecting stable ownership levels despite growing regulatory focus on tax compliance. The majority view digital assets as a long-term store of value, while many now prioritize recordkeeping ahead of filing deadlines, according to Security.org’s Cryptocurrency Adoption and Sentiment Report.
Forty-eight countries—including the United States, United Kingdom, and members of the European Union—have committed to implementing the Organisation for Economic Co-operation and Development (OECD) Crypto-Asset Reporting Framework. Under this framework, service providers must collect and report user transaction data for automatic international exchange beginning in 2027 or later in some jurisdictions; U.S. exchanges are scheduled for first exchanges in 2029, according to OECD documents.
Duca is also known as founder of Awaken Tax, a cryptocurrency tax software platform launched in 2022 that specializes in handling complex on-chain activity such as decentralized finance protocols and non-fungible tokens, according to Awaken Tax.
