FBAR reports are the filings used to report foreign bank accounts, and most crypto trading platforms host their accounts outside the U.S., and as such these accounts are considered foreign bank accounts. Why is this important? You may be subject to a $10,000 minimum fine if you do not comply!
There is a law called FATCA that is in place to fight money laundering since 2010 that basically was put in place to try and stop money going to terrorists in the post 9/11 world. Most people however, including tax practitioners, don't think to ask about crypto currency trading when determining if the non-US account balances tip the magical $10,000 threshold that means reporting is required.
This $10,000 amount is counted across all non-US bank accounts combined, and if this amount is passed anywhere during the calendar year you are required to file an FBAR report. If you don't file this report you can be subject to penalties of the greater of $10,000 or 10% of the account balance for each year of not reporting.
This isn't the end of the world, however. This is only an informational reporting, meaning that the IRS won't tax you on the amounts you report. So with the penalties it is wise to file.
You can file online at: https://bsaefiling.fincen.treas.gov/NoRegFBARFiler.html
In addition to FBAR reporting, if your balances were over $50,000 at any point during the year you may have form 8938 filing requirements. This form is attached to your tax return and a little more complex to fill out. Info is available here: https://www.irs.gov/businesses/corporations/do-i-need-to-file-form-8938-statement-of-specified-foreign-financial-assets
If you are just filing for 2017 you are fine and can probably do this yourself easier than having anyone help you with it. If you haven't filed in previous years there are some options where you can avoid penalties with a few different amnesty program choices. I will do a later blog on these options, but I don't want to get too complicated here.
Please hit me up if you have any questions and hope this helps... And FYI I'm for the most part not taking new clients, just want to help people out.