This is a form for the Bitpays & Coinbases of the world to fill out, not citizens.
Unhosted wallet to them means when they provide a non-custodial wallet, such as the coinbase wallet app... This has nothing to do with your trezor because Coinbase can't know you have one.
It will have a chilling effect, however, in what these companies do offer after they figure out all the pain involved with filling out these forms per customer.
San Salvador is beautiful this time of year.
No one is going to check that box willingly. Lol
Does just an individual withdrawing to cold storage without selling count as a digital proceed from a broker transaction?
Unhosted? What is unhosted? Nothing to worry, unless it says self hosted. ;)
But yes I can see the concern.