Does KuCoin Report to the IRS?
Used KuCoin while living in the US? The IRS might be aware of your activity. Learn if KuCoin operates in the US & what information may be accessible to the IRS.
KuCoin withdrew services from the USA in 2024, following legal challenges from the Commodity Futures Trading Commission.
The exchange has implemented KYC procedures, and US residents were given until January 2025 to exit the platform.
It’s unclear what information KuCoin may have provided to agencies as part of settlements.
Is KuCoin legal in the US?
No, Kucoin withdrew services in the USA in 2024 as part of a legal settlement.
In March 2023, New York Attorney General Letitia James filed a lawsuit against KuCoin, alleging the platform had failed to register before allowing residents to trade cryptocurrencies. The suit claimed KuCoin violated the Martin Act by facilitating crypto transactions, offering an income-generating product called “KuCoin Earn,” and misrepresenting itself as a licensed exchange.
By December 2023, KuCoin reached a settlement, agreeing to restrict access for New York users and pay $22 million to resolve the case.
Then, in March 2024, the U.S. Commodity Futures Trading Commission (CFTC) brought criminal charges against KuCoin and its founders, accusing them of breaching anti-money laundering regulations. The CFTC alleged the platform allowed billions in illicit funds to flow through its system without implementing proper identity verification or registering with the Treasury Department, as required by law. Founders Chun Gan and Ke Tang were also charged with related conspiracy offenses.
In January 2025, KuCoin pleaded guilty to operating an unlicensed money transmission business. As part of the resolution, it agreed to pay $300 million in penalties. Gan and Tang stepped down from involvement with KuCoin, and its U.S. operator, Peken Global Limited, consented to withdraw KuCoin from the U.S. market for at least two years.
Read next: Best No KYC Crypto Exchanges
Why isn’t KuCoin legal in the US?
KuCoin is not legal in the U.S. because it failed to register as a money services business with federal and state regulators, did not implement required anti-money laundering (AML) and know-your-customer (KYC) procedures, and actively sought U.S. customers without proper compliance.
Does KuCoin report to the IRS?
Since KuCoin is not authorized to operate in the U.S., it’s unlikely the platform is currently sharing user data with the IRS, but it’s unclear if information was shared as part of settling legal disputes.
Exchanges that are legally allowed to serve U.S. customers must register with FinCEN as Money Services Businesses (MSBs), comply with SEC oversight when applicable, and meet individual state-level regulatory requirements. This includes implementing robust Know Your Customer (KYC) procedures and adhering to federal tax reporting rules.
Any exchange legally operating in the U.S. is required to verify user identities and issue tax forms like the 1099 to both users and the IRS, requirements KuCoin has historically not met.
Read next: Crypto 1099 Forms
What do crypto exchanges report to the IRS?
U.S.-compliant crypto exchanges are required to issue 1099 tax forms depending on the nature and volume of a user’s transactions.
For example, if a user earns over $600 in rewards or other crypto-related income, they may receive a 1099-MISC.
In addition, under new IRS rules, platforms will soon be required to issue the 1099-DA form, which goes beyond previous versions by reporting detailed information on each crypto sale or trade.
How do I report my KuCoin taxes to the IRS?
If you’ve made gains, incurred losses, or earned income through trading on KuCoin, it’s important to report these to the IRS, either by filing an amended return or, if applicable, through the IRS voluntary disclosure program.
Since KuCoin doesn’t issue tax forms for U.S. users, most traders turn to crypto tax calculators like Koinly to track their transactions and accurately calculate profits, losses, and other taxable events.
Report your crypto taxes with Koinly
Koinly simplifies reporting your KuCoin transactions by automatically importing your trading data, either via API connection or by uploading a CSV file.
Once your data is synced, Koinly calculates your capital gains, losses, income, and other taxable activity, then generates IRS-ready tax reports. Learn more about how to create your KuCoin tax reports with Koinly.
