Users who have been trading on Kucoin since before 2019 will need to request a CSV file from our support team for the old history. 0 coins. Crypto income in the United States must be taxed at the same rate as other types of income. This organization is of the view that cryptocurrencies are classified as property for tax purposes; meaning that you incur capital gains and capital losses at any moment you trade, sell or dispose off your cryptocurrency. In the end, keep in mind that unlike crypto exchanges like Robinhood and Coinbase that directly report to the IRS, KuCoin does not. In the long run, they want to be one of the 10 top largest exchanges globally, and they hope to achieve this by 2021. The Kucoin exchange has recently announced that it will be reporting to the IRS (United States Internal Revenue Service) in order to comply with US tax regulations. It is a third-party exchange that allows you to trade different cryptocurrencies. In the United States, crypto income is subject to income tax and capital gains tax., Capital gains tax: If you dispose of your cryptocurrency, you incur a capital gain or loss depending on how the price of your crypto has fluctuated since you originally received it. Yes, if accounts are jointly owned, you need to report all owners. Since KuCoin is not a US-based exchange, it differs when it comes to IRS. Heres a simple step-by-step process to help you import all of your KuCoin transactions into the CoinLedger platform. Additionally, it has grown to include more than 10 million members and has existence in over 200 countries. Several negative reviews report . The posts on this site include affiliate links with our partners who may compensate us, at no cost to the reader. This means you will have all of your transactions reported to the IRS. It is to create a simple and safe platform for people worldwide to trade a range of digital coins. Do you want to know how to cash out bitcoin without paying taxes? Under US law, financial gains that are realized from the trading of digital currencies during a financial year will be subject to Capital Gains Tax (CGT) and must be reported to the IRS. Thus, it runs under the regulation of Hong Kong's laws regarding such matters. Assume that you do not even report your activities and dont include them with your tax return. Over 600 different digital currencies are available for purchase, sale, and trading on the KuCoin platform. While KuCoin does not provide tax forms or documents, the company does provide two simple ways to export transaction and trade history. Due to the strict rules that apply to US crypto exchanges, KuCoin does not have a license to operate there. This website uses cookies to ensure you get the best experience on our websiteGot it! Crypto tax software like CoinLedger can help. This is not financial advice. Situation 02: No Reports on Your Activity. Now that you know about the situation briefly. That's not true," CoinTracker's Chandrasekera said. You can remain anonymous. If you're someone who wants to start trading cryptocurrencies, you probably included KuCoin among the list of choices. Due to its location, you probably wonder if it's safe and secure. Bitcoin and other cryptocurrencies are often traded on decentralized exchanges, which are exchanges that do not report their transactions to government authorities like the Internal Revenue Service (IRS). Since KuCoin doesn't officially operate in the US, they aren't required to report anything to the IRS. The law is constantly evolving. There are a couple different ways to connect your account and import your data: Both methods will enable you to import your transaction history and generate your necessary crypto tax forms in minutes. Frantisek Szabo -Programmer, cryptocurrency enthusiast, promoter of decentralization and freedom and CEO of Coinario, more information, Copyright (c) 2023 - Lemony trade s.r.o.VAT: CZ29043026info@coinario.com, Never invest more than you can handle and always keep them in YOUR, Where Is KuCoin Based? While there are many different types of 1099 forms, well focus on three relevant ones in this article. Scan the QR code to login KuCoin, From now on, you can market ticker in real time. Best OTC Crypto Trading Services in Australia, How to buy crypto with bank transfer in Australia, How to buy crypto with a credit card in Australia, How to buy crypto with a debit card in Australia, How to buy crypto with PayPal in Australia, Mejores exchanges para comprar criptomonedas, Mejores exchanges de criptomonedas en Estados Unidos, Las principales plataformas de trading de margen de criptomonedas, Los mejores bots de comercio de criptomonedas, Cmo comprar criptomonedas en USA | gua completa, Best Australian Mobile Share Trading Apps, Disclaimer: Marketplacefairness.org aims to keep all information accurate and up to date, however there may be instances where the information provided may differ from what you see on the official website. Users who have been trading on Kucoin since before 2019 will need to request a CSV file from our support team for the old history. Trading, staking, or earning interest from lending products or mining pools on KuCoin are considered taxable events and investors must report to the IRS. Once the API has been connected, click on the 'Generate Tax Report' button. It isalive, and as such, its capable of growth and development. Can I use a prepaid Visa on KuCoin? Binance.US makes it easy to review your transaction history. This website is not to be used as investment advice, financial advice or legal advice, and your personal needs will differ from the author's. Enter your API Key, API Secret, and API Passphrase into the provided text boxes. I love that they have hundreds of exotic altcoins, allow futures trading (complete with shorts and using leverage), have functionality to set stop losses and take profits, and provide a staking platform. We will breakdown how to do this in the next section. That is specifically because they are not wanted to produce any US tax documents. Thus, if you plan on investing through it, you may need to include it in your FBAR filing. Kucoin users can get a special 15% discount on Koinly services by signing up using this link! This means that capital gains and losses reporting rules apply to cryptocurrency similar to how they apply to stocks (another form of property). How to Report Cryptocurrency On Your Taxes. Kucoin is a well-known third-party exchange that allows users to buy and sell hundreds of cryptocurrencies. In short, if the IRS requests KuCoin to provide your financial history on the platform, they will be able to access all your transactions from the day you signed up on the platform until now. Its likely that major exchanges like Coinbase will be required to issue 1099-B forms to customers and the IRS in the near future because of the passage of the 2021 infrastructure bill. All Rights Reserved. :-). In addition, you will likely need to report individual and joint accounts if your total balance in foreign accounts is greater than $10,000. Connect CoinLedger to your KuCoin account with the read-only API. You can still do transactions even if you are not verified. Same with Lending. Much of the controversy around crypto exchanges operating in the US revolves around regulation of prediction contracts and securities. While KuCoin offers plenty of benefits, you still need to be aware of the risks it involves, especially since it's not a US-based exchange. Koinly will now be able to synchronize all your transaction and trading history as well as any future transactions to produce compliant crypto tax reports that you can use to file your taxes yourself or with the help of an accountant. As a result, all exchanges are subject to the laws and regulations of their location. Therefore, investors must use the right crypto tax platform to file cryptocurrency taxes on time. For more information, check out our guide to crypto loan taxes., At this time, KuCoin is not licensed to operate in the United States. Does KuCoin have a debit card? However, they wont have full access to the platforms functionalities. The process of reporting cryptocurrency trades to the IRS is the responsibility of the individual trader. If you mark "yes", first & foremost, it would signal the IRS to check various forms & schedules of the return for cryptocurrency gains & losses. 20. Difference between cryptocurrency and bitcoin, Binance.us 200m rre ventures foundation capital, Regulators exploring how could crypto assets, Blockchain 37m series coatue shunwei capital. 22. When it comes to Kucoin, you can see significantly low fees for transactions and trading. As KuCoin offers a vast and many crypto investment options that ranges from buying and trading to futures and mining, it might yet be unable to provide tax forms and documents, but the company does provides two easy ways to export transaction and trade history. My experience with KuCoin has been awesome. Coinbase support states:. If you earn income from cryptocurrency mining, staking, or other related transactions, you will need to report it to the IRS. Since its inception, it has expanded to become one of the major global exchanges in terms of transaction volume. This is because Kucoin is not a US-based company and is not subject to US tax laws. Depending on your platform of choice, you could wind yourself in one of these stations. Step 6: Select Your Portfolio Page and Click on "Send"More items. (IRS Can See Everything Pertaining to Your Transactions, Including Crypto). Koinly helps with this by synchronizing your wallets and exchange accounts and showing you the profit/loss for every transaction! This is due to the fact that the IRS receives all of this information through your tax form 1099B. Enter your API Key, API Secret, and API Passphrase into the provided text boxes. You can then navigate to the KuCoin tab inside CoinLedger and select Auto-import. 25. When dealing with authorities like the IRS, you must be aware of a few important things. In general, you can use KuCoin in the USA, and you'll need to do the following things. Create the appropriate tax forms to submit to your tax authority. In years prior to 2021, Coinbase sent you a 1099-K tax form if: If you met all three of these requirements prior to 2021, Coinbase sent you AND the IRS a copy of 1099-K. Coinbase stopped issuing this form to customers after 2020. In most states at least. 12.2 Can I use KuCoin without KYC? 23. KuCoin, like many other cryptocurrency exchanges, does not report to the IRS. The good news is that you do not have to pay any type of tax if you are simply holding a crypto asset. Why is reporting crypto taxes so difficult? When the Internal Revenue Service (IRS) involves, you know it is a big deal. According to KuCoin's privacy policy, the corporation may provide personal information if ordered to do so by a government agency. Examples of cryptocurrency disposals include selling your cryptocurrency for fiat or trading your cryptocurrency for other cryptocurrencies. This may present a problem in the future if Coinbase is required to issue 1099-Bs. Find the next crypto gem on www.kucoin.com, People's Exchange. Step 3: Select the Cryptocurrency and the Network Your Want to Receive. If you receive a 1099-K from a cryptocurrency exchange then you will also likely receive an IRS CP2000 letter for unreported income in the future. How KuCoin Treats Your Crypto Transactions, The Importance of Reporting Crypto Earnings to the IRS. Can you purchase XRP on KuCoin? Key Points. You will only be taxed when you sell them, or convert them to a different coin. Choosing a strong password is crucial as well. These systems are so popular because Binance is another fantastic example of this. Kucoin is Growing in Popularity It is a Great Way of Saving Money and Trading 01. When IRS Asks About Cryptocurrency On Your Taxes, Answer Carefully More From Forbes Feb 24, 2023,03:21pm EST IRS Extends Tax Deadlines To Oct. 16 For Taxpayers In California, Alabama And. However, a search on Google or another search engine should bring up a variety of Kucoin reports from different sources that you can review.