US Expat Crypto Taxes Explained: Bitcoin, NFTs, and Digital Assets Abroad

Crypto feels borderless — but US tax law is not.

If you’re a US expat holding or trading crypto, your tax obligations follow you, regardless of where you live or which exchange you use.

This is one of the fastest-growing problem areas for expats.

Do US Expats Pay Tax on Crypto?

Yes. US expats must:

• Report crypto transactions

• Pay tax on gains, income, or disposals

• Disclose accounts when required

Living abroad does not remove crypto tax obligations.

For a full foundation, see:
👉 /complete-guide-us-expat-taxes

Is Crypto Considered Foreign Income?

Crypto itself is not foreign income — but:

• Where you live

• Where exchanges are based

• How income is generated

…can affect reporting and classification.

Mining, staking, and airdrops are usually treated as taxable income.

Crypto and FEIE

The Foreign Earned Income Exclusion (FEIE) generally:

• Does not apply to capital gains

• Rarely applies to crypto income

Many expats assume FEIE shields crypto — it usually doesn’t.

Learn more about FEIE here:
👉 /foreign-earned-income-exclusion-feie-expats

Crypto Held on Foreign Exchanges

Crypto held on foreign platforms may raise:

• FBAR questions

• FATCA considerations

The rules are evolving, but conservative reporting is often safer.

Related reading:
👉 /fbar-foreign-bank-account-reporting-expats

Common Crypto Mistakes Expats Make

Frequent issues include:

• Not tracking transactions

• Ignoring small trades

• Assuming anonymity

• Missing disclosures

Crypto exchanges increasingly share data with tax authorities.

Practical Takeaway

Crypto doesn’t eliminate taxes — it complicates them.

Exemplary helps expats report digital assets correctly, avoid compliance gaps, and align crypto activity with US tax rules.