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How To Do Your KuCoin Taxes

What is Kucoin?

KuCoin is one of the largest crypto exchanges worldwide, with 1 out of every 4 crypto investors holding their investments on the exchange. KuCoin offers a huge host of crypto investment options from buying and trading to derivatives, NFTs, earn products, and even a non-custodial wallet.

How to get your KuCoin tax report with Koinly

Whatever your crypto investments, Koinly can help you do your KuCoin taxes safely, quickly, and accurately. 

  1. Sign up to Koinly and choose your country and currency
  2. Connect KuCoin with Koinly to import all your KuCoin trades safely and securely
  3. Koinly categorizes KuCoin transactions into gains, losses, and income
  4. Download your KuCoin tax report from Koinly
  5. File your KuCoin taxes online or with your crypto tax accountant
OMG I had signed up on the free version, synced my Binance and Kucoin, and had a few questions on the free report. I pinged my question in the chat, and what happened next was simply not expected! Carl, the superhero, answered all the questions and gave me the clarity I was looking for. P.S. This happened on a Saturday and on 26th Feb, just days before the tax filing due date. Outstanding service.
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Watch how to do your KuCoin taxes fast

Does KuCoin report to the IRS?

It's unlikely KuCoin reports to the IRS as KuCoin isn't licensed in the US and collects minimal KYC data for basic verification. As such, there's very little information the exchange could hand over to the IRS the agency ever tried to compel the exchange to.

This doesn't mean you don't need to report your KuCoin gains, losses, and income to the IRS - as you'll face severe penalties if you fail to report your crypto profits accurately.

Does Kucoin report to the ATO (and other tax offices)?

It's unlikely KuCoin reports to the ATO. KuCoin isn't regulated or licensed to operate in Australia and, unlike many Australian exchanges, isn't registered with AUSTRAC. KuCoin requires minimal KYC data for all transactions, so there's very little information the exchange could hand over to the ATO, or other tax offices.

How to get a KuCoin tax statement?

Generally, you need to report your crypto - including KuCoin - as part of your annual tax return. For example, in the US, investors would need to report any gains or losses on Form 8949 and Schedule D and any income on Schedule 1 or Schedule C.

To do this, you need to start by calculating your KuCoin taxes. You can do this yourself, by exporting your KuCoin transaction history and identifying your taxable transactions (and the kind of tax that applies), before calculating any gains or losses and identifying the fair market value of any income in your fiat currency on the day you received it.

Of course, for most investors, this is a lot of work - which is where Koinly comes in. With Koinly crypto tax calculator, all you need to do is connect your KuCoin account to Koinly either using API or by uploading a CSV file of your KuCoin transaction history. Once connected, Koinly will identify your taxable transactions, calculate your gains and losses, and identify the fair market value of any income for you. You can see all this in your tax summary for free. Once you're ready to file, you can download the KuCoin tax documents you need, when you need them. Koinly can generate a huge variety of KuCoin tax documents for users all around the world including the IRS Form 8949 & Schedule D for US investors, the ATO myTax report for Australian investors, the HMRC Capital Gains Summary for UK investors, and many more.

Let's take a look at how to connect.

How to connect Koinly and KuCoin automatically using KuCoin API

Wondering how to get your KuCoin API key? Easy. Here's how.

On KuCoin

  1. Log in to KuCoin
  2. Select your account in the top right corner
  3. From the drop-down menu, select API management
  4. Select create API
  5. Select create API-based trading
  6. In the API name box, enter a name, such as "Koinly".
  7. In the API passphrase box, create your passphrase
  8. Under API restrictions, select general for read-only access - leave spot trading, margin trading, futures trading, and transfer boxes unchecked (Koinly only needs APIs with read access)
  9. Under IP restriction, select no
  10. For security verification, you'll need to enter your trading password that you created when you made your KuCoin account and complete 2FA
  11. On the new pop-up, copy the API Key and Secret

The Kucoin API limits the amount of data that can be fetched. Most transaction types can only be fetched for the last year. If your account is older than 1 year, then we recommend using CSV files to import your historical data before setting up the API.

On Koinly

  1. Sign up or log in to Koinly and go to the wallets page.
  2. Select add new wallet: KuCoin.
  3. Select set up auto-sync.
  4. Paste the API key into the API key box.
  5. Paste the API secret into the API secret box.
  6. Enter the passphrase you created earlier.
  7. Select secure import.

Important
1. KuCoin had a massive update in 2019. For users who had an account prior to this update, there may be some issues with transactions importing incorrectly. If this applies to you, you can just use the CSV import file method below instead.

2. If you've already used the KuCoin API method - make sure to delete your KuCoin API transaction data before uploading your KuCoin CSV file(s).

3. KuCoin futures are now supported through the KuCoin API.

How to integrate KuCoin with Koinly using CSV

It's easy to get your KuCoin CSV files to upload to Koinly, just follow our instructions below.

How to export your KuCoin transaction history

  1. Log in to KuCoin
  2. Select orders in the top right hand corner
  3. From the drop down menu, select spot trade history
  4. Select export history in the top right corner
  5. From the new menu on the right, under the market drop-down, select all
  6. Under the date range drop-down, select 1 year - each report has a maximum date range of one year, so you may need to download multiple reports to cover your entire transaction history
  7. Check the timezone is listed as UTC-0 Europe/Greenwich
  8. If you have used sub-accounts, check the includes sub-accounts box
  9. Select .csv as the file type
  10. Select confirm

Please note, KuCoin only allows users to download the previous 2 years of transaction information via CSV in-app. Users can request the files through KuCoin customer support by opening a ticket with KuCoin, and requesting a CSV file to cover their full transaction history. You'll receive your new KuCoin CSV file via email.

How to upload your KuCoin CSV to Koinly

  1. Sign in to your Koinly account and head to the wallets page
  2. Select add new wallet: KuCoin
  3. Select import from file
  4. Upload your CSV file(s)

Important

1. Make sure your CSV file is set to the correct timezone before you upload. If you've already exported it, don't worry, this is easy to fix - learn how.

2. If you're using the CSV file method for KuCoin and you have a KuCoin Futures Account, you don't need to create two separate wallets in Koinly for KuCoin and KuCoin Futures, you can just upload all your CSV files at the same time.

How do I troubleshoot my KuCoin integration to Koinly?

Problems with your KuCoin data import? We can help!

Calculate your KuCoin taxes

Sign up free today to calculate your KuCoin taxes.

Is KuCoin safe?

Wondering if KuCoin is legit? KuCoin is generally regarded as a secure exchange that uses strong security practices including secure asset storage and multi-layer account security. KuCoin has also published proof of reserves via an independent third party and offers a bug bounty to encourage ethical hackers to find any security flaws on the platform. However, like all large crypto exchanges, KuCoin is an appealing target for hackers and has been hacked before in 2020 for more than $250 million, so you should always follow best security practices and keep any crypto you're not actively trading in an offline, secure wallet.

Where is Kucoin based?

Wondering where the KuCoin headquarters are? KuCoin is based in Victoria, in the Seychelles, although the company has employees working around the world.

What are KuCoin fees?

KuCoin has a tiered maker/taker fee model based on your trading volume over the last 30 days in a given market and the 'class' of crypto you're trading. The fees are relatively low compared to other exchanges, and KuCoin Token (KCS) holders receive exclusive discounts. Cryptocurrencies are split into classes based on their trading volume. You can see an example of KuCoin trading fees for Class A cryptocurrencies below. Please note, you don't need to meet the 30-day trading volume requirements for every market.

What is KuCoin staking?

KuCoin offers many staking and earn products for investors, including flexible staking products for those who want to stake as part of a consensus mechanism without the downside of having crypto locked up long-term.

As well as this, KuCoin offers many earn products which are similar to staking products but may offer higher returns (and higher risk!) including dual investments, savings, and boosted earning promotions. You should always DYOR before using any KuCoin staking or earn products to understand the risks involved. Learn more about KuCoin staking in our guide.

What's the Kucoin trading bot?

KuCoin Bot is an automated trading bot that can help you stay on top of market changes and execute your strategy faster by automating your transactions according to specific conditions. There are several KuCoin trading bots available including:

  • KuCoin Spot Grid Trading Bot: Sell high, buy low.
  • KuCoin Futures Grid Trading Bot: Go long or short to profit from market trends.
  • KuCoin Smart Rebalance Trading Bot: Spread the risk by diversifying your portfolio.
  • KuCoin DCA Trading Bot: Regularly invest a given amount using automated dollar cost averaging.
  • KuCoin Infinity Grid Trading Bot: Use a grid trading strategy to place buy and sell orders and take advantage of bullish volatility.

Want to learn more about trading bots? Learn about the best trading bots in 2023.

Which should I use KuCoin vs Binance?

Looking for a Binance vs Kucoin review? Both are leading crypto exchanges and widely used by investors around the world, so the reality is the right platform for you will come down to the products and cryptocurrencies offered, as well as where you live as you may be in a restricted country. Need help to choose? Check out our best crypto exchanges guide which compares safety, security, fees, and more.

Does KuCoin require KYC?

Wondering if there's mandatory KuCoin KYC? As of July 2023, KuCoin now has mandatory KYC for accounts. There are several tiers of KYC available with different withdrawal limits.

What's the KuCoin wallet?

HaloWallet partnered up with KuCoin to become the recommended KuCoin non-custodial wallet, allowing investors to explore web3 and DeFi while remaining in control of their keys and their crypto.

What's the KuCoin token?

KuCoin Token (KCS) is the native token of the KuCoin exchange. The token launched in 2017 as a utility token, giving holders exclusive benefits, as well as allowing traders to share in the growth of the exchange. KCS holders get daily bonuses from KuCoin's daily trading fee revenue.

How to short on KuCoin?

There are a couple of options for shorting on KuCoin including KuCoin futures, and leveraged tokens so it depends on the product you're using.

For KuCoin futures, investors can hedge against downside risk in the spot market without holding the underlying asset. The easiest way to do this is by using limit, stop, or market orders and selecting sell/short. It's important to note that futures products come with high risk and your losses may be substantially more than trading in spot markets, so you should always DYOR to ensure you understand the risks involved and never invest more than you can afford to lose.

KuCoin also offers leveraged tokens for a huge number of cryptocurrencies. Short tokens are defined by the S symbol - for example, AVAX3S or AAVE3S are examples of tokens that effectively create a 3x short position on an underlying asset. Although leveraged tokens are slightly lower risk compared to other leveraged options thanks to collateral generally being managed by a rebalancing function, they are not without risk. You can learn more about the benefits and risks of leveraged tokens in our leveraged tokens guide.

Can I use KuCoin in the US?

Yes, although KuCoin isn't licensed to operate in the US, this doesn't mean US users cannot use the platform. As there is no KYC verification, anyone, anywhere can use KuCoin - although without KYC verification some product offerings may be limited and there will be withdrawal and deposit limits for your account.

Does KuCoin have tax documents?

No. But you can use your KuCoin trading history to calculate your crypto taxes yourself or with crypto tax software.

How do I get KuCoin tax documents?

The easiest way to get your KuCoin tax documents is to connect to crypto tax software via API or by uploading a CSV file of your KuCoin transaction history. Your crypto tax calculator will then calculate your KuCoin taxes for you and generate your KuCoin tax documents.

Do you get a 1099 from KuCoin?

No, KuCoin is not licensed to operate in the US due to the strict regulations for US crypto exchanges. As such KuCoin tax forms are not provided.

Does KuCoin provide financial or end of year statements?

No, KuCoin doesn't supply a financial statement. But you can use your KuCoin trading history as a financial statement. If you use a crypto tax app, all you need is your trading history to generate a KuCoin tax report for your regional tax authority.