Crypto Card Spending Can Trigger Taxes and Leave Users Owing a Shortfall

Spending crypto with a card can create a taxable gain or loss and leave a customer responsible for a balance that collateral does not cover, even when the card lists no purchase fee. For U.S. taxpayers, digital assets are property. Disposing of a digital asset held as a capital asset can produce a gain or loss, calculated by comparing its adjusted basis with the amount realized. When an asset is exchanged for goods or services, that amount can include the value of what the customer received, less transaction costs allocated to the exchange. The result depends on those figures at disposal; a purchase does not automatically mean tax is owed. OKX launched a virtual Mastercard for eligible U.S. customers on Nov. 2.

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