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. Enter your Kucoin API keys (generated from API Management page on Kucoin), 4. However, even if you are a resident of the United States, you can still use Kucoin. CoinLedger automatically generates your gains, losses, and income tax reports based on this data. Report Fraud, Waste and Abus e to Treasury Inspector General for Tax Administration (TIGTA), if you want to report, confidentially, misconduct, waste, fraud, or abuse by an IRS employee or a Tax Professional, you can call 1-800-366-4484 (1-800-877-8339 for TTY/TDD users). Do you want to know how to cash out bitcoin without paying taxes? Still, in its essence, KuCoin is a third-party exchange that allows you to trade different cryptocurrencies. Connect CoinLedger to your KuCoin account with the read-only API. To request the historical export please contact our online customer support. Comment for robots Sign up to Koinly and choose your country and currency; Connect KuCoin with Koinly to import all your KuCoin trades safely and securely For more information, check out our complete guide to cryptocurrency taxes. Now just wait for Koinly to pull in data from the Kucoin API automatically.The full Kucoin tax guide can also be found here: https://koinly.io/integrations/kucoin/. The exchange boasts bank-level security on all its wallets. It is a Great Way of Saving Money and Trading. . Examples of cryptocurrency disposals include selling your cryptocurrency for fiat or trading your cryptocurrency for other cryptocurrencies., Ordinary income tax: If you earn cryptocurrency, youll recognize ordinary income based on the fair market value of your crypto at the time you received it. When virtual currency is being held in a foreign financial account or something similar and there is no other currency (such as euros) held within the account, then the account is generally not reportable. HedgewithCrypto aims to publish information that is factual, accurate and up to date. Please keep posted on our official website and social media channel for the latest updates and announcements. They then charge interest on the loans they get in return. As a result, theyll know exactly what you bought and sold and the amount ofmoney you earned. Because cryptocurrency is so easily transferable, investors often move their coins between different wallets and exchanges. Kucoin Overview. The importance of summarizing and reporting all crypto transactions made on the KuCoin platform goes beyond the capital gains that have been obtained. Examples of income events include earning staking or referral rewards. Regardless, cryptocurrency is still an asset class thats 12-15x more volatile than stocks. However, we're working to support more exchanges in the future. File these forms yourself, send them to your tax professional, or import them into your preferred tax filing software like TurboTax or TaxAct. It does not matter if you earn $1 or $100,000 in crypto, you will have to report every single gain to the IRS in order to fulfil your tax duties and avoid penalties. All Rights Reserved. KuCoin exports a complete Transaction History file to all users. If you want to use Kucoin in the US, you will have to do that without the KYC verification, this means you will have restrictions on withdrawal. KuCoins minimal trading fees make it an appealing alternative to some of its competitors. Does KuCoin supply a financial statement No, KuCoin doesn't supply a financial statement. Given this, it is possible that creating an account will expose you to some dangers. In this case, its difficult for Coinbase to know Davids original cost basis. Setting up two-factor authentication (2FA) is a must with all your crypto accounts including KuCoin. > Deposits and click on Export CSV, select the timeframe and hit Confirm. So the question here is, do you need to worry about that if you are trading or investing with KuCoin? However, [1] suggest this regulation will soon apply to accounts on foreign crypto exchanges as well. You can read more about how taxes work in their, 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. Seeking an expert guide! If KuCoin is ordered to release such information, there would be no limit in terms of the transaction amounts or timestamps. Can I use a prepaid Visa on KuCoin? If you avoid paying these taxes, you risk facing heavy penalties or even tax-fraud charges, even if you hide your earnings or gains for just a short period. This is not available via the website or via API. For instance, KuCoin is a cryptocurrency exchange based in Hong Kong. Most of KuCoins staff operate in Singapore. Does KuCoin report to IRS? CoinLedger can make the process easier than ever. One of the first things we consider with an exchange is its location. No manual work is required! Examples include earning crypto from staking or an airdrop. So, you can create a larger cryptocurrency portfolio by taking advantage of reward programs. The exchange supports users from more than 200 countries and has over 11 million users from around the world. Individuals that choose to bypass this using a VPN, do so at their own risk and will need to file their crypto taxes on their own. Kucoin users can get a special 15% discount on Koinly services by, Main & Trading & Margin & Futures & Financial Account, Recommended videos for new users from Youtube. However, Kucoin is working on a solution that will allow US taxpayers to receive a 1099 form in the future. In that case, lets see what happens if you fail to declare your crypto activities. So unless server level access is granted/acquired then it cant happen. Schedule D, Form You do not need to mail it to the IRS. Before making any financial decisions, get the advice of a trusted expert. Given KuCoin is not a regulated cryptocurrency exchange in the USA, the question that arises is ether KuCoin reports to the IRS? As a result, if you receive income from KuCoin, you must report it on your taxes. Thus, if you plan on investing through it, you may need to include it in your FBAR filing. KuCoin is one of the last standing TRUSTED central exchanges with no KYC required. Step 2. KuCoin is a cryptocurrency exchange based in Hong Kong. Another thing to note is that the exchange has so-called KuCoin Shares (KCS). The trouble with KuCoin's reporting is that it only extends as far as the KuCoin platform. Youll get a red flag automatically and a very undesirable letter from the IRS. In fact, in September 2020, the Kucoin cryptocurrency exchange was hacked. While KuCoin does not itself report to the IRS, as it is not licensed to operate in the United States, investors have to manually report their trading activity. Do I need to report joint ownership on an FBAR for crypto? This may present a problem in the future if Coinbase is required to issue 1099-Bs. Do all crypto exchanges report to the IRS?It's 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.Can the IRS see my crypto wallet?It's likely that the IRS is closely monitoring transactions on blockchains . In this case, the burden of proof will be on David to prove that he bought his Bitcoin for $10,000. You can also do the process in reverse if you want to withdraw. However, you may generate an end-of-year statement using the export of your KuCoin transaction history. Passionate about electronic devices, smartphones, computers, and modern technology. Examples of disposals include selling your cryptocurrency or trading it for other cryptocurrencies. I do speak from personal experience here. If you are in the United States, you can learn which forms you need to fill out with our blog post: How to Report Cryptocurrency On Your Taxes. If you have any questions about how to report cryptocurrency income on your taxes, please contact your tax professional. Automatically sync your KuCoin account with CoinLedger via read-only API. For some, this canbe a way of storing and trading; for others, it mightbe a replacement. Step 3: Select the Cryptocurrency and the Network Your Want to Receive. Since it has different regulations, you may also experience regulations from a different country if you plan on pushing through with it. What does the IRS do with the information Coinbase provides? It's almost the same except for the FBAR filing. The posts on this site include affiliate links with our partners who may compensate us, at no cost to the reader. This guide will answer whether KuCoin reports to the IRS and, if that is the case, whether it is direct or automatic. If so, that indicates that IRS is not aware of the crypto transactions made from your profile. Exporting data from Kucoin with CSV files. Top of my wish list for KuCoin exchange though is to enable KYC for US residents and lets us complies with US regulations fully. In this case, cryptocurrency will not be an exception. 12.1 Does KuCoin report to the IRS? Further, the exchange does not suffer from any system overloads. Tax Report The IRS Sets a Trap for Cryptocurrency Tax Cheats The tax collector is making it a lot harder to pretend you don't have bitcoin or other virtual currencies hidden away somewhere. . The Form 8938 filing requirement does not replace or otherwise affect a taxpayer's obligation to file FinCEN Form 114 (Report of Foreign Bank and Financial Accounts). However, despite the fact that KuCoin is one of the few centralized crypto exchanges that does not require KYC verification, many US residents continue to use the exchange. KuCoin offers a huge host of crypto investment options from buying and trading to futures and mining. Figuring out your cost-basis and keeping track of the tax liability as you trade is crucial if you want to reduce your tax burden. Please keep posted on our official website and social media channel for the latest updates and announcements. You can test out the software and generate a preview of your gains and losses completely for free by creating an account. If one or more of your cryptocurrency accounts share joint ownership, it's likely that you will need to report all of the owners on your tax form once FinCEN updates its regulations around virtual currency. Yes, it's true. 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? As we said above, KuCoin isn't licensed in the US - so it's unlikely KuCoin is reporting directly to the IRS. These software platforms have a variety of tools to calculate and file crypto taxes. :-). And DEXes don't have futures trading bots!!! US-based exchanges do report to the IRS. Save my name, email, and website in this browser for the next time I comment. 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. Please do not use this website as investment advice, financial advice or legal advice, and each individual's needs may vary from that of the author. Since its inception, it has expanded to become one of the major global exchanges in terms of transaction volume. Rewards from referrals and staking would fall into this miscellaneous category. As a result, its difficult for exchanges to provide their customers with accurate tax reporting information. KuCoin only has a record of transactions that took place on its own platform. For more information, check out our guide to crypto loan taxes., At this time, KuCoin is not licensed to operate in the United States. It is not only important, but it is mandatory for residents of the USA to report to the IRS, as it is the only governmental organization in the country managing and keeping track of residents' taxes. Trades are not on chain so no Data Analytics are available. 22. This site allows users to input their Kucoin trade history and then generates a tax report. Although based in Hong Kong, KuCoin doesn't close its doors to foreign investors. Thats it! This is exactlywhy many of you areunsure about including your Kucoin in your upcoming tax return. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Project beanstalk loses million loan attack. In this guide, well break down everything you need to know about Coinbase tax reporting. As a result, its difficult for KuCoin and other exchanges to keep a complete record of your cost basis and capital gains., Crypto tax software like CoinLedger can help. This holds true for the vast majority of currency exchanges. If you receive cryptocurrency as payment for goods or services Many businesses now accept Bitcoin and other cryptocurrency as payment. This means that capital gains and losses reporting rules apply to cryptocurrency similar to how they apply to stocks (another form of property). It is also possible to get one simple file instead of multiple ones as requested by you from KuCoin support. Koinly is a leading cryptocurrency tax platform that allows crypto investors to generate capital gains reports that are compliant with local laws. For more information, check out our article on why Coinbase stopped issuing Form 1099-K. NFL . In the end, keep in mind that unlike crypto exchanges like Robinhood and Coinbase that directly report to the IRS, KuCoin does not. Well also share a simple 5-step process to help you report your KuCoin transactions on your tax return in minutes., KuCoin is a Seychelles-based cryptocurrency exchange that was founded in 2017.