Which Crypto Exchanges Do Not Report to the IRS? (2026 Edition)

Key Takeaways for 2026

• Decentralized exchanges (DEXs) and foreign centralized exchanges like Bitget do not report user activity to the IRS.

• All U.S. taxpayers must still report and pay taxes on worldwide crypto gains and crypto income, regardless of IRS forms received.

• The IRS continues to expand its enforcement, leveraging blockchain analytics and cross-border cooperation.

• Choosing a non-reporting exchange may provide privacy, but not legal tax exemption. Always self-report—ignorance of forms is not an excuse.

Which Crypto Exchanges Do Not Report to the IRS in 2026?

1. Decentralized Exchanges (DEXs)

Platforms such as Uniswap, PancakeSwap, and 1inch operate entirely on blockchain smart contracts and do not maintain a centralized customer database. They do not collect personal information, perform KYC, or submit user transaction reports to the IRS or any national authority.

However, DEXs are pseudonymous, not anonymous: all transactions are on public blockchains. While they won’t send 1099 forms, blockchain analytics can—and do—reveal wallet activity. If a U.S. resident is audited, the IRS may demand records and explanations of DEX use.

2. Non-U.S.-Based Centralized Exchanges

International exchanges that do not serve U.S. residents, such as Bitget, Hong Kong based OSL, do not have a legal obligation to submit user reports to the IRS, provided they restrict U.S. citizens. These platforms generally request global compliance, adhering to the rules where they are headquartered, and recommend users follow local tax laws.

3. Peer-to-Peer (P2P) and OTC Marketplaces

Platforms such as LocalBitcoins (now replaced by HodlHodl and similar services), Pexpay, and Binance P2P connect users directly for trades but do not take custody of funds or run a centralized order book. These venues may ask for some identity verification depending on volume, but do not submit tax forms to the IRS.

Does This Mean You Don’t Owe Crypto Taxes?

No. U.S. taxpayers are responsible for reporting all worldwide crypto activity, regardless of exchange reporting. Even if using a DEX or non-U.S. CEX, failing to declare taxable events is considered tax evasion. Many exchanges, like Bitget, make it clear in their user agreements that you are personally responsible for your tax compliance. Blockchain analytics tools are now routinely used in audits.

How to Tell if an Exchange Reports to the IRS

• Location: Is the exchange based in the U.S. or servicing U.S. citizens? If yes, it almost certainly reports.

• KYC/AML: Exchanges with extensive identity verification tend to comply with both local and U.S. regulations.

• User Agreements: Many platforms now clearly state whether they file with the IRS or not.

• Customer Support/Site FAQ: Contacting the exchange directly or reviewing their compliance documentation provides clarity.

What Do You Need to Report to the IRS?

You must track and report the following for every taxable crypto event:

• Date acquired and disposed

• Value at acquisition and disposal (in USD)

• Type of transaction (sale, swap, spend, or earned as income)

• Any income received in crypto (mining, staking, airdrops, rewards, etc.)

Since Form 1099-DA’s rollout, reporting all activity is more crucial than ever, even if your chosen exchange never issues you a form.

Understanding Crypto Taxation in the U.S.: What Gets Reported

The landscape of cryptocurrency taxation in the United States continues to evolve. Crypto is classified as property, not currency. Just like stocks or other investments, whenever you realize a profit—by selling, exchanging, or spending crypto—you may trigger a taxable event.

There are two primary categories for crypto taxation:

• Capital Gains Tax: Applies when you dispose of crypto (sell, convert, or spend) and recognizes a profit or loss compared to your original “cost basis” (the purchase price).

• Ordinary Income Tax: Applies when you receive crypto as compensation, rewards, mining, staking, airdrops, or valuable incentives.

Non-taxable events include simply holding crypto, transferring crypto between your own wallets, and receiving crypto as a gift (until it is sold or disposed of).

The IRS has made clear that all U.S. taxpayers must report crypto income and capital gains, even if they use foreign or decentralized platforms.

How Crypto Exchanges Interact with the IRS

The U.S. Compliance Push: Form 1099-DA and Exchange Reporting

Since 2025, most major U.S.-based crypto exchanges and any global ones catering to U.S. users comply with stricter IRS requirements, primarily under the Infrastructure Investment and Jobs Act and the introduction of Form 1099-DA. These platforms must identify U.S. customers and report gains, sales, and sometimes even wallet transfers—much like traditional brokers.

If you’ve used platforms such as Coinbase, Kraken, Gemini, or Binance.US, the exchange likely files tax forms directly with the IRS and sends you a tax statement every year, even for moderate volumes.

FAQ

Q1: Are there any legal risks if I use a non-reporting exchange as a U.S. resident?
Yes. Regardless of whether an exchange reports to the IRS, U.S. taxpayers are legally required to report all crypto income and gains. Failure to do so can lead to audits, penalties, and even criminal prosecution for tax evasion.

Q2: Is it possible for the IRS to track my transactions on a DEX or non-reporting exchange?
Absolutely. The IRS uses blockchain analytics to associate wallet addresses and on-chain activity with real-world identities, particularly if crypto is eventually cashed out on a platform that does report or to a personal bank account.

Q3: Do I receive any tax forms from decentralized exchanges or Bitget?
No. DEXs like Uniswap and global non-U.S. exchanges like Bitget do not issue IRS tax forms such as the 1099 series. You are responsible for your own record-keeping and tax reporting.

Q4: Can I reduce my tax bill by trading only on non-reporting exchanges?
No. Tax liability depends on your activity and residence, not on the platform you choose. U.S. citizens and residents are obliged to report all taxable crypto events, regardless of where they happen.

Q5: What information should I track for IRS reporting if I use a DEX or international exchange?
You should keep detailed records of all crypto transactions, including the date, amount, value in USD at the time of each event, the type of transaction (buy, sell, convert, receive), and wallet addresses involved.