1. FOUR PILLARS OF REPORTING

2. USA — The Most Enforced

A. IRS — Form 1099-DA (Live from Jan 1, 2025)

New Form: Digital Asset Proceeds from Broker Transactions

• Who files: Custodial centralized exchanges, crypto ATM operators, payment processors, real estate closers that accept crypto — if they maintain private keys or run internal order book.
• What: Gross proceeds from sales/dispositions. Effective date for gross proceeds: Jan 1, 2025 — reported early 2026. Cost basis + holding period mandatory from Jan 1, 2026 transactions.
• Threshold: >$10 gross proceeds.
• Important: Taxpayer must report ALL transactions even if no 1099-DA received. 1099-DA is floor, not ceiling. IRS matches it like stock 1099-B — mismatch = CP2000 notice + audit.

Case Law:

1. US v Coinbase, Inc. (N.D. Cal. 2017) — John Doe Summons: IRS discovered millions of Coinbase users trading but few reporting gains. Court approved narrowed John Doe summons: accounts with at least $20,000 in transactions. Coinbase forced to produce 14,000+ accounts.

2. Harper v Rettig / Harper v Werfel (2020-2025) — Supreme Court ends privacy battle: James Harper, Coinbase user, argued IRS obtaining his Coinbase records via John Doe summons violated 4th Amendment. District court: Coinbase records are business documents, not Harper's private papers. First Circuit affirmed. Supreme Court denied cert in 2025. Result: IRS can get exchange data without notifying you.

Principle: You voluntarily share data with exchange = no expectation of privacy under third-party doctrine.

3. SEC v Ripple Labs (2023), SEC v Terraform: For reporting, if your token is deemed security, you must also file securities transaction reports. This overlaps with tax reporting.

3. EU — MiCA + DAC8 + TFR

This is now the strictest regime globally from 1 Jan 2026.

MiCA (Markets in Crypto-Assets Regulation): CASPs must log user identity, trading history, wallet movements, keep transaction reports, and have DORA cyber resilience from Jan 2025.

DAC8 — Directive on Administrative Cooperation 8th revision: EU implementation of OECD CARF.

• Effective: 1 Jan 2026
• Who: Reporting Crypto-Asset Service Providers (RCASPs) — includes MiCA-authorized CASPs AND decentralized platforms providing services professionally to EU users, regardless of headquarters. Extraterritorial reach.
• What: Automatic exchange of information on crypto-assets between EU countries. Exchange collects data and sends to country of residence of taxpayer annually.
• Scope: Decentralised tokens, stablecoins, certain NFTs.
• First reporting due: Within 9 months after end of reporting year — i.e. mid-2027 for 2026 data.
• Penalty for non-compliance: Revocation of MiCA passporting rights.

TFR — Transfer of Funds Regulation (Travel Rule): From 2024, crypto transfers >€1000 must include originator/beneficiary info — same as bank wire.

Case Law EU: Commission v Spain C-788/19 (CJEU 27 Jan 2022) — though about Modelo 720 bank accounts, Court established principle that disproportionate penalties for overseas asset reporting violate free movement of capital Art. 63 TFEU. Directly cited to strike down old Modelo 720 penalties. Same logic now limits DAC8 penalties — must be proportionate.

4. INDIA — Most Aggressive Tax + AML

India holds 5 pieces at once:

1. No legal tender status
2. No dedicated crypto statute
3. 30% flat tax u/s 115BBH from FY 2022-23 — no deduction except cost, no loss set-off
4. 1% TDS u/s 194S on transfer above thresholds — deducted by exchange/buyer
5. PMLA Reporting Entity — VDA service providers must register with FIU-IND and file STR/CTR

New 2026 Reporting:

• Income-tax Rules amended 5 March 2026 — effective 1 Jan 2026: All VASPs and certain financial institutions must now report transactions and holdings pursuant to India commitment to implement OECD CARF by April 2027.
• Section 285BAA — Reporting goes live Sept 2026: Statutory crypto-asset reporting duty for exchanges — committee chair Bhartruhari Mahtab confirmed govt not accepting delay.
• Schedule VDA in ITR: Separate schedule — must report each transfer, TDS, gains.

Case Laws India:

1. ITAT Jodhpur — Raunaq Prakash Jain v ITO (17 Dec 2024): Pre-April 2022 crypto gains to be taxed as capital assets, not "income from other sources". Profits = capital gains with indexation benefit. Post-April 2022 = 115BBH flat 30%. This distinction is crucial for assessments 2017-2022.

2. Delhi High Court — Crypto Exchanges not "State" under Art. 12 (2025): Taxation of VDAs under Finance Act 2022 does not transform private crypto exchanges into State. So you cannot file writ against WazirX/ CoinDCX for freezing account under public law — remedy is civil/contractual + FIU complaint.

3. FIU-IND vs Binance, Kucoin (2024-25): Exchanges serving Indian users without FIU registration + PMLA reporting blocked, fined ₹18.8 cr — set precedent that DAC8-style extraterritorial reach already enforced by India.

4. Livemint ITAT case — ₹88.55 lakh addition despite ₹3.34 lakh loss: Section 115BBH introduced from AY 2023-24 provides 30% tax + surcharge/cess, restricts set-off. Tribunal held reassessment procedure must be followed, but burden to explain source of investment remains on investor.

5. What to Report Today — Checklist

If you are an individual trader in India:

• File Schedule VDA + pay 30% + ensure 1% TDS credit matches Form 26AS
• Keep wallet-wise cost basis — new IRS-style specific ID rule coming via CARF
• If you are Spanish diaspora: File Modelo 721 + DAC8 will auto-report you anyway