FBAR Crypto: What It Is, Why It Matters, and What You Need to Know
When people talk about FBAR crypto, a U.S. federal reporting requirement for foreign financial accounts that includes cryptocurrency holdings. Also known as FinCEN Form 114, it's not a cryptocurrency—it's a legal obligation that applies to anyone with over $10,000 in crypto held overseas at any point during the year. Many think FBAR is about Bitcoin or altcoins, but it’s really about where you store them. If you use a foreign exchange, wallet, or DeFi platform not based in the U.S., and your total crypto value crosses $10,000, you’re likely required to file.
This rule ties directly into other global reporting systems like FATCA, a U.S. law that forces foreign financial institutions to report account holder information to the IRS and CRS, a global standard for automatic exchange of financial data between countries. Unlike tax returns, FBAR is filed separately with FinCEN, not the IRS, and the penalties for missing it are brutal—up to $10,000 per violation, or even half your account balance if it’s deemed willful. There’s no gray area: if you held Binance, Kraken (outside U.S.), or a crypto wallet on a foreign server, and the balance went over $10,000, you’re in scope.
FBAR crypto compliance isn’t optional, and it’s not something you can ignore just because your crypto lost value. The IRS doesn’t care if you lost 90% of your holdings—if you had $15,000 in ETH on Binance in June, you had to report it. And yes, that includes staking rewards, DeFi yields, and tokens held on non-U.S. exchanges. Many people think they’re safe if they didn’t sell, but FBAR is about ownership, not transactions. The same goes for hardware wallets stored abroad—even if you control the keys, if the device is physically outside the U.S., it counts.
You won’t find FBAR crypto listed on CoinMarketCap. You won’t see it traded on any exchange. But if you’re a U.S. taxpayer with crypto overseas, it’s one of the most important things you need to understand. The posts below break down real cases, show you how to file correctly, explain how FATCA and MiCA interact with crypto, and warn you about platforms that hide your holdings from regulators. Some even detail how people got caught—and how to fix it before it’s too late. This isn’t about speculation. This is about staying legal while holding crypto in a world that’s watching.
FBAR Requirements for Crypto Accounts Over $10,000 in 2025
Understand FBAR rules for crypto accounts over $10,000 in 2025. Learn when you must file, how to calculate your balance, and whether to file even if the law doesn't require it yet.
- April 15 2025
- Terri DeLange
- 11 Comments