If you transfer crypto to a wallet outside the exchange, does the exchange track this as a sale or a transfer?

More context: Crypto Tax Software has no problem tracking this as a transfer—since it knows about all of your wallets—but I suspect the exchange may track this on the 1099-DA as a sale.

But then the 1099-DA reports a sale while the 1099-B generated by the crypto tax software reports a nothing burger—and may not even report this transaction since it’s just a transfer.

Question: do we need to report the 1099-DA is we use crypto tax software to track all transactions? If so, how to reconcile when the two are different?

Update: if not clear this is about US taxes

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