Think crypto is tax-free? Here are 10 crypto tax myths in the UK, US, and beyond that could cost you thousands if you believe them.
Intro
Crypto tax is surrounded by confusion, and it’s easy to believe myths you see on Twitter, Reddit, or Discord. But getting it wrong can cost you thousands — or trigger an HMRC/IRS audit.
Here are the 10 most dangerous myths about crypto tax in 2025.
Myth 1: “I don’t owe tax until I cash out to GBP/USD.”
❌ Wrong. Selling, swapping, or spending crypto all count as taxable disposals.
Myth 2: “VPNs hide me from HMRC/IRS.”
❌ Wrong. Exchanges share KYC data directly with tax offices. VPN ≠ invisibility cloak.
Myth 3: “NFTs aren’t taxed.”
❌ Wrong. Buying/selling NFTs = capital gains. Creating NFTs = income.
Myth 4: “Gifts aren’t taxable.”
❌ Wrong. Many gifts trigger capital gains events.
Myth 5: “DeFi is too complex for the tax office.”
❌ Wrong. HMRC/IRS are catching up fast — ignoring it = penalties.
Myth 6: “Losses don’t matter if I didn’t make gains.”
❌ Wrong. Registering losses lets you carry them forward to reduce future tax.
Myth 7: “Stablecoins aren’t taxable.”
❌ Wrong. Swapping ETH → USDT is a disposal event.
Myth 8: “Mining/staking is only taxed when I sell.”
❌ Wrong. They’re taxed as income the day you receive them.
Myth 9: “I only used a DEX, so I’m safe.”
❌ Wrong. Wallet activity can be traced and matched to you.
Myth 10: “I’ll just ignore it — they won’t find me.”
❌ Wrong. HMRC and IRS already have your data. Penalties for non-reporting are brutal.
Final Thoughts
Crypto tax myths might feel comforting — but believing them could cost you thousands.
👉 At TaxAnon, we cut through the myths and deliver clean, compliant reports in 48 hours.
🔗 Get HMRC/IRS-ready today