Following the collapse of FTX Group - Digital Surge announced it was temporarily halting deposits and withdrawals from the platform due to limited exposure to FTX as a portion of digital assets were held with FTX to facilitate trades.
Digital Surge is not part of the FTX Group, but has been indirectly impacted. The pause of withdrawals and deposits was to stop a bank run while Digital Surge resolves any liquidity issues with FTX.
On the 8th of November 2022, Digital Surge announced it was going into administration and operations would be paused throughout this process.
We recommend ensuring you have good records of your Digital Surge transactions and assets, by exporting your Digital Surge transaction history to CSV.
Digital Surge is a popular and trusted Australian exchange, with a clean and user-friendly interface and great trading options for both new and experienced crypto investors. Whatever your Digital Surge investments, Koinly can help you get your crypto taxes filed with the ATO, here’s how.
You’ll pay tax on any capital gains or income from your Digital Surge investments. The amount of tax you’ll pay depends on how long you’ve held your asset and how much you earn. Learn more in our Australia crypto tax guide, but in brief:
Yes, Digital Surge may report to the ATO. Digital Surge is an AUSTRAC registered exchange and may be compelled to share KYC data with the ATO and other authorities to ensure tax compliance.
You’ll need to report any gains, losses or income from your Digital Surge investments to the ATO and you do this as part of your annual tax return, either using the myTax portal or paper forms NAT 2541 & NAT 2670.
Doing this yourself? Start by identifying the cost basis of each crypto asset, your taxable transactions and the kind of tax that applies. Then calculate your gains and losses (using an allowable cost basis method), and remember to separate short and long-term gains to make sure you don’t pay too much tax!
Not only do you need to do this for your Digital Surge transactions, but for every crypto exchange or wallet you used to trade throughout the financial year. It’s a lot of work for active investors.
Fortunately, you can use Koinly and save hours. Just connect Digital Surge and Koinly automatically via API or by uploading a CSV file of your transaction history. Koinly will calculate your Digital Surge taxes and generate your myTax report, ready to file with the ATO. Here’s how to connect.
Rather skip the spreadsheets? No worries - use API instead. In Digital Surge, select the three line icon in the top right corner, then API Key, then create a new API key. You only need a read-only API key for crypto tax software, but you'll need to complete two-factor verification to get it. Once you've got your new API key, just copy and paste it into your chosen crypto tax calculator.
You'll need to have a mobile number associated with your Digital Surge account in order to create an API key. Don't want to? No worries, use the CSV file method instead.
You'll need to start by downloading a CSV file with your full trading history from Digital Surge before you can upload it to Koinly. Here's how.
Now you've got your CSV file, here's how to upload it to Koinly.
1. Don’t forget to tag your transactions according to the ATO’s crypto tax rules.
2. Even if you're only reporting for the current financial year, it's really important you include all your Digital Surge transaction history - for however long you've been trading on it. This lets Koinly calculate your short-term and long-term gains accurately and apply the right tax.
Problems connecting Digital Surge and Koinly? No worries - there's help at hand:
Sign up free today to calculate your Digital Surge taxes.
No, Digital Surge doesn’t provide a tax report that you can file with the ATO straight away. Instead, you’ll need to download your Digital Surge transaction history as a CSV file and calculate your taxes to file instead (or use a crypto tax calculator).
Digital Surge offers 2 easy ways to export your transaction history to connect with crypto tax software - like Koinly - and generate tax forms. Either connect via API or upload a CSV file of your Digital Surge transaction history.
No. Digital Surge doesn’t issue a financial or EOFY statement to users. You’ll need to download your Digital Surge transaction history as a CSV file and use this as your financial statement instead. When exporting a CSV from Digital Surge, you can pick the date range you’d like to cover - for example, the most recent financial year (1 July - 30th June).
Yes. If you have gains or income from your Digital Surge transactions - you’ll need to pay tax. If you’re thinking of avoiding your taxes? Don’t - the penalties are steep!
Digital Surge is a secure and regulated crypto exchange, but has recently faced some liquidity issues due to limited, indirect exposure to FTX Group.
Yes. Digital Surge is an AUSTRAC and ASIC registered exchange and therefore must have KYC verification in place for users. To trade on the exchange, you'll need phone and identity verification.