When you trade or hold crypto in the crypto regulations US, the set of laws and enforcement actions by U.S. agencies like the IRS, SEC, and OFAC that govern how cryptocurrency is taxed, reported, and restricted. Also known as U.S. cryptocurrency law, it’s not optional—it’s enforceable, and the penalties are real. The IRS treats crypto as property, not currency. That means every trade, sale, or even using Bitcoin to buy coffee can trigger a taxable event. If you don’t report it, you’re not just being careless—you’re risking audits, fines, or worse.
One of the biggest traps for U.S. holders is the FBAR crypto penalties, a reporting requirement for Americans with over $10,000 in foreign financial accounts, including crypto exchanges outside the U.S.. Failing to file an FBAR can cost you up to $100,000 per violation, even if you didn’t earn a cent. The IRS isn’t guessing—they’re matching data from exchanges like Coinbase and Kraken. And it’s not just about taxes. The US crypto sanctions, actions taken by the Office of Foreign Assets Control (OFAC) to block certain crypto tools and addresses linked to illegal activity have shut down privacy tools like Tornado Cash. Using them isn’t just risky—it’s now illegal, even if you didn’t know the funds were tainted.
Businesses operating in crypto face even stricter rules. If you run a platform that handles crypto transfers, you need a VASP licensing, a legal requirement for crypto businesses to register as a Virtual Asset Service Provider with federal or state regulators. This isn’t just a formality—it’s about proving you’re doing KYC, AML checks, and keeping records. Countries like Nigeria and others are following similar paths, but in the U.S., it’s non-negotiable. You can’t just launch a platform and hope for the best.
What you’ll find here isn’t theory. These posts break down real cases: how people got hit with FBAR fines, why exchanges like CRXzone vanished without a license, how Tornado Cash changed privacy forever, and why platforms like BitMEX and Global Blockchain Exchange stay in business by playing by the rules. Some posts warn about scams hiding behind fake compliance claims. Others show you how to trade legally even if you’re outside the U.S. But every single one ties back to one truth: in the U.S., crypto isn’t lawless. It’s regulated—and if you ignore that, you’re the one who pays.
FinCEN registration is mandatory for U.S. crypto exchanges. Learn the 2025 compliance rules, state licensing requirements, AML obligations, and real costs to avoid shutdowns or criminal charges.