How To File Your Bitfinex Taxes With Koinly
How to do your Bitfinex taxes with Koinly
Bitfinex is a popular crypto exchange for advanced investors looking to conduct large transactions with a range of digital assets and a host of trading options, including margin trades and lending. Koinly can help you do your Bitfinex taxes safely, quickly, and accurately.
Follow these steps to sync your Bitfinex data automatically to Koinly:
- Log in to your Bitfinex account.
- In the top right-hand corner, scroll over the profile icon to open up the drop-down menu.
- From the drop-down menu, select security.
- On the right-hand navigation bar, select API.
- Select create new key.
- The permissions granted should already be set to read-only access, but double-check this.
- Select generate API key.
- Complete 2FA.
- Copy both the API key and the API key secret from Bitfinex and add them to Koinly.
- Create a free account on Koinly
- Complete onboarding until you get to the Wallets page and find Bitfinex in the list
- Select API > Paste the API keys 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!
Your frequently asked questions
Does Bitfinex have tax documents?
No, Bitfinex does not provide a tax report. However, you can use your Bitfinex transaction history to generate a Bitfinex tax report using a crypto tax app.
How do I get Bitfinex tax documents?
The easiest way is to connect to a crypto tax app via API. The API fetches your transaction data to calculate your crypto taxes for you. If you'd rather not use an API, you can download a CSV file of your Bitfinex trading history using the steps above.
Does Bitfinex provide financial or end of year statements?
No, but your Bitfinex ledgers file includes your complete trading history on Bitfinex. You can use this to create a Bitfinex tax statement for your local tax office.
Do I have to pay taxes on Bitfinex?
Yes, if you’ve made any capital gains or income as a result of your crypto investment activities on Bitfinex, you'll need to report these to your tax office and pay taxes on them.
Is Bitfinex available in the US?
No. Bitfinex is not licensed to operate in the USA. However, as KYC verification is minimal and only required for fiat withdrawals and deposits, some US investors still use the platform.
Is Bitfinex safe?
Although Bitfinex was subject to a hack in 2016 (to the tune of around 119,000 BTC), the exchange improved security practices and is generally considered a safe exchange.
How did Bitfinex get hacked?
Bitfinex suffered a security breach in which 2,000 approved transactions were sent to a single wallet. In February 2022, the US government recovered and seized some of the stolen Bitcoin.
Does Bitfinex require KYC?
Yes. Bitfinex requires KYC for fiat withdrawals and deposits.
Does Bitfinex have Proof of Reserves?
Yes - Bitfinex has provided Proof of Reserves via a snapshot of addresses they own via a GitHub repository. Bitfinex outlines which wallets are cold versus hot wallets and also maintains an “in-house opensource library” called Antani to demonstrate exchange-wide Proof of Reserves. For more information about what Proof of Reserves are and why it matters - check out our blog post.