Don’t think I said anything about people going to crypto to stay legit.
Frequently Asked Questions on Virtual Currency Transactions
Q5. The 2020 Form 1040 asks whether at any time during 2020, I received, sold, sent, exchanged, or otherwise acquired any financial interest in any virtual currency. During 2020, I purchased virtual currency with real currency and had no other virtual currency transactions during the year. Must I answer yes to the Form 1040 question? (3/2/2021)
A: No. If your only transactions involving virtual currency during 2020 were purchases of virtual currency with real currency, you are not required to answer yes to the Form 1040 question.
I was concerned about this as well given the all-encompassing way the question was worded. I only purchased in 2020 so I didn't have to disclose anything. I took some profit in 2021, so I will have to answer "yes" next year and claim the capital gains on a separate form.