Crypto Tax Compliance Staggeringly Low: Only 0.53% of Investors Declared Crypto in 2022, According to Study
ncarol.com/10216883

STOCKHOLM - ncarol.com -- A study by European cryptocurrency tax calculator Divly estimated that just 0.53% of cryptocurrency investors declared their cryptocurrency activity to their local tax authorities in 2022. However, tax payment rates varied significantly by country, with Finland boasting the highest rate at 4.09% and the Philippines registering the lowest at 0.03%.

In the United States, an estimated 1.62% of cryptocurrency investors declared their crypto holdings to tax authorities in 2022, placing the US 10th among the 24 countries analyzed. Other countries with relatively high tax payment rates included Australia (3.65%), Austria (2.75%), Germany (2.63%), and the United Kingdom (2.61%).

The study looked at the total number of cryptocurrency investors that declared their taxes but does not claim that everyone who invested in cryptocurrency was required to pay taxes.

Historical Trends in Cryptocurrency Tax Compliance

More on ncarol.com

• Lease A Sales Rep Rebands to Rent A Sales Rep
• The Golden Jazz Fest Shuttle Returns for 2026
• KeysCaribbean Resorts Offer Savings On Vacations Through Aug. 31, Preview Exceptional Select Fall Rates of Less Than $200/Night
• Fit Body Boot Camp Launches Nationwide 'Fit Body Forever' Workshops to Help Adults 60+ Rebuild Strength and Prevent Falls
• Canadian Aerospace Defence Talent Expo (CADTE) Launches National TalentThread Initiative to Strengthen Canada's Future Workforce

Historical trends show a steady increase in cryptocurrency tax declarations. In 2015, less than 900 US citizens reported crypto according to the United States District Court, while 5.9 million Coinbase accounts were active. By 2018, declaration rates increased to 0.8% based on data from Credit Karma. The current study estimates 1.62% of US investors declared taxes in 2022, a doubling since 2018, but compliance remains low.

Discrepancies with Survey-Based Studies

While this study presents a comprehensive analysis of global cryptocurrency tax compliance, it is worth noting that its findings differ from those of several survey-based studies. These discrepancies may be attributed to differences in methodology and potential biases in survey data.

Survey-Based Studies in the US

Cointracker conducted a survey in 2022 that showed 4% of US cryptocurrency investors had reported their cryptocurrencies at a time when 40% of individual returns had been filed. This figure is considerably higher than the 1.62% estimated by the current study. Similarly, a Coinledger survey in 2021 indicated that more than 50% of respondents declared their crypto holdings on their tax returns.

More on ncarol.com

• 5.6 Million EUR in Q1 Project Awards for Integrated IoT Solutions / Data Analytics Subsidiary of Smart City Developer: Affluence (Stock Symbol: AFFU)
• Merger Advancement For Embodied AI Co in Robotic Systems Serving High Value Hospitality, Gaming & Real Estate Sectors: MBody AI Corp. (NAS DAQ: MBAI)
• Hollywood In Pixels Announces Honorees for The 9th Silver PIXel Awards
• New Research Finds a Good Deal Is All It Takes to Get Americans Booking a Last-Minute Vacation — and Most Already Have One on Their Mind
• GitKraken Introduces GitLens 19, Bringing Human and AI Workflows Together in One Workbench

Factors identified that may contribute to discrepancies in compliance rates between the study and previous surveys include potential overestimation due to respondents' unwillingness to admit non-compliance, and self-selection bias, which results in skewed data from differing participant choices.

Future Outlook

Tax payment rates for cryptocurrencies may improve as countries implement new regulations and enhance enforcement, such as the European Union's proposed changes to the Directive on Administrative Cooperation (DAC).

The report highlights the current state of cryptocurrency tax compliance across the globe and underscores the need for improved regulation and enforcement. As the cryptocurrency landscape continues to evolve, it will be crucial for governments and tax authorities to adapt and ensure that the growing number of investors are adequately informed about their tax obligations.