US cryptocurrency holders feel fear and confusion over the IRS’s new tax law.

Jinse Finance reported that a recent survey of 1,000 U.S. digital asset investors found that more than half are concerned they will face IRS tax penalties this year as new transparency rules regulating cryptocurrency exchanges take effect. Data collected by the cryptocurrency tax platform Awaken Tax at the end of January shows that U.S. cryptocurrency holders are worried about the fundamental shift from self-reporting to automatic reporting of transactions. The new regulations are aimed at cracking down on cryptocurrency tax evasion and require cryptocurrency exchanges and other brokers to report all digital asset sales and transactions that occur during 2025 to tax authorities. The goal is to give tax authorities a clear understanding of investors’ gains and losses by opening up internal customer data from exchanges for the first time, enabling the IRS to compare data reported by cryptocurrency brokers with that reported by taxpayers.