Am I required to file FBAR and FATCA 8938 for crypto held on foreign exchange?

[Edward44]

This question is asked multiple times on reddit or even this forum and every time it has different answers. I talked to multiple CPA's and the answer is different as well.

If I held only crypto on foreign exchange and meet the threshold for both FBAR and FATCA 8938, am I required to file these forms?

The latest I found about FBAR is FinCEN Notice 2020-2 that says: 

Currently, the Report of Foreign Bank and Financial Accounts (FBAR) regulations do not define a foreign account holding virtual currency as a type of reportable account. (See 31 CFR 1010.350(c)). For that reason, at this time, a foreign account holding virtual currency is not reportable on the FBAR (unless it is a reportable account under 31 C.F.R. 1010.350 because it holds reportable assets besides virtual currency).

That's pretty clear, no need to file FBAR if it's just crypto, however I still see here on the forum people saying that it is required to file? 

As for FATCA 8938 I was not able to find any information specific to cryptocurrency. There's no guidance at all for 8938 specific to crypto. 

What's your take on this? 

The challenge I see here is I'm not able to find an exchange physical address that is required in those forms.   

[AmyC]

File FATCA, possibly FBAR soon. The IRS tax forum this summer, announced that the foreign wallet is considered an asset. There are proposed laws to make it part of the foreign accounting laws. The asset vs account is the key here. This means:

FATCA - Form 8938  & Instructions for Form 8938 are filed with the IRS if thresholds are met.

Who Must File

Unless an exception applies, you must file Form 8938 if you are a  Specified Person, l that has an interest in specified foreign financial assets and the value of those assets is more than the applicable reporting threshold.

As to the FBAR, this is the proposal to make the FBAR necessary and should be passing soon, Notice-Virtual Currency Reporting on the FBAR 123020.pdf.