EIN Requirements for Cryptocurrency and Digital Asset Businesses

Nov. 16, 2025, 10:43 a.m.
As cryptocurrency and digital asset markets continue to expand in the United States, regulatory expectations around taxation, compliance, and reporting have become far more structured. Whether you're launching a crypto exchange, mining operation, NFT marketplace, DAO, or Web3 startup, one requirement appears almost universally: obtaining an Employer Identification Number (EIN).
EIN for Crypto

1. Do Cryptocurrency and Digital Asset Businesses Need an EIN?

Yes—almost all crypto-related businesses that operate in the U.S. must have an EIN, even if they do not have employees.

You need an EIN if your crypto venture is:

  • A corporation (C-corp, S-corp)

  • A partnership

  • A multi-member LLC

  • A single-member LLC taxed as a corporation

  • A nonprofit crypto foundation

  • A foreign-owned crypto or blockchain company operating in the U.S.

Even individuals involved in crypto may need an EIN depending on their activities.

2. Crypto Activities That Typically Require an EIN

a. Crypto Exchanges & Trading Platforms

  • Centralized exchanges (CEXs)

  • Decentralized exchange operators (DEX teams)

  • OTC trading desks

  • Custody providers

Regulators expect these businesses to have clear tax identity records.

b. Mining, Staking, and Validator Businesses

If you mine or stake crypto as a business—not as a hobby—you need an EIN for:

  • Business tax returns

  • Equipment depreciation

  • Payroll (for employees)

  • Business banking and accounting

c. NFT Creators & Marketplaces

NFT activity qualifies as business income when operated professionally or at scale.

Marketplaces also need EINs for:

  • KYC/AML compliance

  • Tax form issuance (1099s)

  • Corporate reporting

d. Web3 Startups & Blockchain Developers

Smart contract developers, SaaS platforms, blockchain analytics firms, and token issuers typically require EINs for:

  • Funding

  • Payroll

  • Tax reporting

  • Banking

e. DAOs Operating as Legal Entities

Many DAOs now register as:

  • LLCs

  • Nonprofits

  • Cooperatives

These entities need EINs to operate legally in the U.S.

3. Why Crypto Businesses Need an EIN

1. Banking & Exchange Compliance

U.S. banks require an EIN to open accounts for crypto companies due to enhanced KYC rules.

2. IRS Reporting Obligations

Crypto businesses must use their EIN for:

  • Federal income taxes

  • Payroll taxes

  • Information returns (1099s, W-2s)

  • DAO entity filings

3. Hiring Employees or Contractors

If the business hires workers, an EIN is mandatory.

4. Corporate Formation Requirements

Incorporation requires an EIN for:

  • Filing tax returns

  • Receiving venture capital

  • Signing contracts

  • Operational licensing

4. EIN Requirements for Foreign-Owned Crypto Companies

Foreign entrepreneurs running crypto businesses in the U.S. must obtain an EIN if they:

  • Operate a U.S.-based LLC or corporation

  • Have U.S. employees

  • Have servers or infrastructure located in the U.S.

  • Earn U.S.-sourced income

  • Launch a token or platform for U.S. users

Foreign owners do not need an SSN or ITIN to get an EIN; they can apply using IRS Form SS-4 with the “Foreign” checkbox selected.

5. How to Apply for an EIN as a Crypto or Web3 Company

Option 1: Apply Online (Fastest)

www.einregister.online

Option 2: Apply by  Phone

(502) 547-2551

6. EIN Mistakes Crypto Businesses Should Avoid

  • Using a personal SSN for business activities

  • Incorrect business type selection (common for DAOs & single-member LLCs)

  • Failing to issue 1099 forms for crypto payments

  • Not updating EIN information after restructuring or token launch

  • Using multiple EINs improperly for decentralized teams

7. Do Crypto Traders or Investors Need an EIN?

Usually not, unless they operate as:

  • A trading partnership

  • An LLC

  • A fund manager

  • A crypto mining business

Personal investors reporting individual capital gains do not need an EIN.

8. EIN Compliance for Crypto Payments

Businesses paying contractors or partners in cryptocurrency must:

  • Issue Form 1099-NEC

  • Report payments using FMV in USD at transaction time

  • Use their EIN for all federal tax filings

9. Summary

Almost every structured cryptocurrency or digital asset business operating in the United States needs an EIN. This includes exchanges, miners, NFT platforms, DAOs, and blockchain startups. An EIN allows businesses to:

  • Meet IRS tax obligations

  • Open corporate bank accounts

  • Hire employees

  • File information returns

  • Comply with anti-money-laundering regulations

As regulation continues tightening around digital assets, EIN compliance is no longer optional—it’s essential.