FinCEN Form 114: What It Is, Who Must File, and How Crypto Changes Everything

When you hold more than $10,000 in FinCEN Form 114, a mandatory annual report for U.S. persons with foreign financial accounts. Also known as FBAR, it’s not a tax form—it’s a disclosure requirement enforced by the Financial Crimes Enforcement Network, or FinCEN. This isn’t optional. If you have crypto, fiat, or any other asset in an overseas bank, exchange, or wallet provider—and the total value crossed $10,000 at any point last year—you’re legally required to file. Ignorance doesn’t protect you. Neither does thinking "it’s just crypto"—because FinCEN treats digital assets exactly like cash.

Many people assume FinCEN Form 114 only applies to traditional banks. That’s a dangerous myth. If you used Binance, Kraken, Coinbase, or any foreign platform to hold Bitcoin, Ethereum, or stablecoins like USDT, and you’re a U.S. person, those holdings count. The same goes for wallets hosted outside the U.S., even if you control the private keys. FinCEN’s rules don’t care if it’s decentralized. They care about control, location, and value. And with crypto prices soaring, hitting that $10,000 threshold is easier than ever—even if you only held $8,000 in BTC and $3,000 in USDT across two foreign exchanges.

Penalties for skipping this form aren’t small. You could face $10,000 per violation for non-willful mistakes. For intentional failures? Up to $100,000 or half the account balance—whichever is higher. Real people have lost homes over this. In 2024, the IRS collected over $300 million in FBAR-related penalties, and crypto-related filings are rising fast. Countries like the UK, Australia, and Germany now share crypto account data with the U.S. through automatic reporting agreements. So if you held crypto on a foreign platform, chances are FinCEN already knows.

It’s not just about exchanges. If you used a foreign wallet service like Ledger Live (if registered abroad), a decentralized exchange with non-U.S. servers, or even a peer-to-peer platform based overseas, those counts too. The rule is simple: if the entity isn’t based in the U.S. and you had access to funds there, you need to report. And yes, that includes crypto staking accounts, lending platforms, and yield farms hosted outside the country.

There’s no grace period. No "first time" exception. And no way to hide it if you’ve been filing taxes correctly—because the IRS cross-checks your tax returns with FinCEN data. If you claimed crypto gains but didn’t file Form 114, you’re already on their radar. The best move? File late rather than never. The IRS has a streamlined delinquent FBAR procedure that cuts penalties dramatically if you come forward voluntarily.

What you’ll find below are real cases, clear breakdowns, and practical advice from people who’ve been there. From how to file Form 114 for crypto wallets to what happens when you miss the deadline, these posts cut through the noise. You won’t find fluff here—just what you need to stay compliant, avoid fines, and understand how crypto fits into U.S. financial reporting laws.