How to file your Bitlayer taxes with Koinly
Bitlayer is an EVM-compatible layer-2 blockchain for the Bitcoin network, that utilizes the BitVM paradigm to allow for the development of smart contracts and dApps. But if you've got Bitcoin DeFi transactions - you may have a tax bill. Don't worry, Koinly can help. Here's how.
Follow these steps to sync your Bitlayer data automatically to Koinly:
- Open your Bitlayer wallet app
- Locate and copy your public address or key
On Koinly:
- Create a free account on Koinly
- Complete onboarding until you get to the Wallets page and find Bitlayer in the list
- Select API > Paste the public address/key you copied above in the appropriate box
- Hit Import and wait for Koinly to sync your data. This can take a few minutes
- Review your transactions on the Transactions page to ensure everything is tagged correctly and no missing data
- Go to the Tax Reports page to view your tax liability!
- Head over to our help center
- Hit up our discussion boards - we might have already answered your question
- Ask us on social media - we're on Twitter and Reddit
- Contact us on email or live chat
- Got a feature request? Give us feedback on Canny
FAQs
What is Bitlayer?
Bitlayer is a Layer 2 solution for the Bitcoin network, aimed at enhancing Bitcoin's speed, scalability, and efficiency. By building on top of Bitcoin, it maintains the network's security and decentralization while enabling low-cost, near-instant transactions. The key technology behind Bitlayer is BitVM (Bitcoin Virtual Machine), which allows for the execution of smart contracts and dApps on Bitcoin, much like how Ethereum Virtual Machine (EVM) operates for Ethereum. Bitlayer is also EVM-compatible, meaning it can support and map Bitcoin-based assets using Ethereum-like functionalities. Interactions with Bitlayer require connecting to a node through the JSON-RPC protocol, a standard communication method between decentralized applications and the network.
Do I have to pay tax on my Bitlayer transactions?
Yes. In most countries, profits from crypto transactions, regardless of the network you've made them on are taxable. You'll generally pay Capital Gains Tax or Income Tax on your transactions. You can learn more in our crypto tax guides.
How do I calculate my Bitlayer taxes?
The easiest way to calculate your Bitlayer taxes is to use Koinly. Just add your address and Koinly will automatically import your Bitlayer transaction data and calculate your gains, losses, income, and more.
