Do you report crypto on the FBAR? Foreign crypto accounts and US filing rules

If you’ve used a crypto exchange based outside the US, you may have wondered whether it belongs on the FBAR, the annual report of foreign financial accounts. The short answer, according to FinCEN: under current rules, a foreign account that holds only virtual currency isn’t reportable. But there are exceptions, the rules may change, and other forms still apply.

This guide explains what the FBAR is, what FinCEN has said about crypto, when a foreign account may still count, how Form 8938 fits in, and what to keep. For how crypto itself is taxed, see US crypto tax.

What the FBAR is

The FBAR, FinCEN Form 114, is a report to the Financial Crimes Enforcement Network (FinCEN), the Treasury bureau that administers the Bank Secrecy Act. According to FinCEN, a United States person with a financial interest in, or signature authority over, foreign financial accounts must file it if the aggregate value of those accounts exceeds $10,000 at any time during the calendar year.

The IRS explains the key practical points:

• Who: a US person, including a citizen, resident, corporation, partnership, limited liability company, trust or estate.
• When: it’s an annual report due April 15 after the year being reported, with an automatic extension to October 15.
• How: it’s filed electronically through FinCEN’s BSA E-Filing System, and not with your federal tax return.
• Records: you generally have to keep the records for five years from the FBAR’s due date.

Note that the $10,000 test uses the total of all your foreign accounts, not each one separately.

What FinCEN says about crypto

FinCEN addressed crypto directly in Notice 2020-2, published in December 2020. It says that the FBAR regulations currently don’t define a foreign account holding virtual currency as a type of reportable account, citing 31 CFR 1010.350(c). For that reason, it says, a foreign account holding virtual currency is not reportable on the FBAR at this time.

The same notice says FinCEN intends to propose amending the regulations to include virtual currency as a type of reportable account. When we checked in October 2026, FinCEN’s FBAR page still listed that 2020 notice as its guidance on virtual currency. A proposal would normally appear in the Federal Register first, so watch FinCEN’s FBAR page before each filing season.

When a foreign crypto account may still count

The notice has an important exception: a foreign account holding virtual currency can be reportable if it’s a reportable account under 31 CFR 1010.350 because it holds reportable assets besides virtual currency.

FinCEN doesn’t give examples in the notice. If a foreign platform account holds something other than crypto, such as a balance in a traditional currency or other financial assets, don’t assume it’s excluded. Ask a tax professional how the rule applies to your account, and remember that any account that is reportable counts toward the $10,000 total.

The FBAR position only covers the reporting form. It says nothing about whether the crypto inside the account is taxed: that is decided by the normal tax rules.

Form 8938 is a separate question

Form 8938, the Statement of Specified Foreign Financial Assets, comes from a different law (FATCA) and works differently from the FBAR. The IRS’s comparison table shows the main differences:

Higher thresholds apply if you live abroad: for an unmarried taxpayer, more than $200,000 on the last day of the year or more than $300,000 at any time.

On crypto, the current Form 8938 instructions, revised in November 2021, don’t mention digital assets, and neither does the IRS comparison table. In other words, the official guidance for Form 8938 doesn’t say whether crypto held through a foreign platform is a specified foreign financial asset. If the amounts involved are significant, get professional advice rather than guessing.

Penalties for not filing

The IRS comparison table summarizes the penalties for both forms:

• Form 8938: up to $10,000 for failing to disclose, plus an additional $10,000 for each 30 days of non-filing after an IRS notice, up to a maximum of $60,000. Criminal penalties may also apply.
• FBAR: civil penalties are adjusted annually for inflation. For penalties assessed before 1 August 2016, the table lists up to $10,000 if non-willful, and if willful, up to the greater of $100,000 or 50% of account balances. Criminal penalties may also apply.

If you discover you should have filed in earlier years, see unreported crypto and IRS penalties and speak to a tax professional before you file anything.

Your tax return still asks about crypto

Whether or not an account goes on the FBAR, the digital asset question on Form 1040 still applies: the IRS says everyone filing Form 1040 must answer it. The FBAR is only an information report, so not having to file one doesn’t make your crypto activity tax-free. Selling, swapping or spending crypto can still create gains you have to report.

See US crypto tax for the rules and Form 1099-DA explained for the broker forms. For how other countries are starting to collect data from crypto platforms, see CARF and crypto tax reporting.

What to do now

1. List every foreign account, including crypto platforms, with the highest balance each reached during the year.
2. Note what each one holds: only crypto, or other assets as well.
3. Add up the reportable accounts. If the total went over $10,000 at any point, you need to file an FBAR.
4. Keep statements for five years, including exports from foreign exchanges, which can disappear if a platform closes.
5. Check FinCEN’s FBAR page each year in case the virtual currency rule changes.
6. Ask a professional if an account holds a mix of assets, or if Form 8938 may apply.

If you’re choosing a platform, also check that it’s allowed to serve US customers: see how to check a crypto exchange is registered.