So KYC just means you created your wallet/exchange with personal information correct? And KYC is to prevent laundering and stuff and so everything gets reported to the IRS. So one thing I’m confused about is, if a wallet is created without any personal information for example an electrum wallet and you just receive and send (not buy or sell) how does the crypto company even report anything to the IRS? Like even coinbases wallet is non-custodial and doesn’t require personal information to create, so where are they sending this 1099 tax form to and how does the IRS even know how much you have or had in your “wallet”?
Sorry I might be totally off base and confused… my bad if I am
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