Poloniex is a popular global crypto exchange where investors trade millions daily. As well as spot trading, Poloniex offers margin and derivatives trading and earn products. Whatever your Poloniex investments, Koinly can help with your crypto taxes, here's how.
Crypto tax varies depending on where you live and the specific transactions you've made on Poloniex. Learn more about crypto tax in your country in our crypto tax guides, but generally, you’ll pay either Capital Gains Tax or Income Tax on your crypto.
As a large centralized exchange, Poloniex has faced pressure to share data with tax offices. Notably, the IRS issued a John Doe summons to try and compel the exchange to share customer transaction data. Poloniex has since withdrawn operations from the US.
You need to report any capital gains, losses, or income from your Poloniex investments to your tax office and pay any taxes due. This is generally done as part of your annual tax return.
You can calculate this yourself, by identifying each taxable transaction, the kind of tax that applies, and calculating your gains and losses (and any income) - but it's very time-consuming.
This is why most investors opt to use a crypto tax calculator like Koinly. Koinly calculates your tax liability and generates your crypto tax report, ready to file with your tax office. Here’s how to connect.
1. The Poloniex API only returns transaction data after 30 July 2021. If you have transactions prior to this point, you'll need to get this data as a CSV file and upload it to Koinly in order to get your complete Poloniex transaction data.
2. You may need to enable API access in order to create your keys. You'll need to complete an email verification in order to do this.
You need to export your complete Poloniex transaction history and upload this to Koinly in order to calculate your taxes correctly. There are a few CSV files you may need in order to do this including:
Please note for the futures PNL history CSV file, borrowing CSV file, and repayments CSV file - you only need to export and upload these if you've used these products on Poloniex, otherwise, you can ignore these files.
Now you've got your CSV files, here's how to upload them to Koinly.
Remember, you need your entire Poloniex transaction history, for however long you've had your account. In most instances, Poloniex only lets you export transaction data for one year. This means you may need to export multiple files of the same type in order to get your complete transaction history to upload to Koinly.
Having problems connecting Poloniex and Koinly? Here's where you can find help:
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No, Poloniex does not issue tax documents to users. It would be very difficult for Poloniex to do this due to the varying crypto tax laws around the world. Instead, you'll need to calculate your Poloniex taxes yourself or use crypto tax software.
The easiest way to get a Poloniex tax report is to connect automatically to crypto tax software using the Poloniex API. Your API will return your transaction data to your crypto tax calculator which can then calculate your Poloniex taxes for you and generate a tax report. If you prefer not to use the API, you can upload CSV files of your Poloniex transaction history to crypto tax software instead by following our instructions above.
No. Poloniex does not provide financial or end of year statements, but you can export CSV files of your transaction history from Poloniex.
Yes. If you have capital gains or income from Poloniex, you'll need to report these to your tax office and pay any taxes due. Not sure how crypto is taxed where you live? Check out our crypto tax guides.
No. Poloniex withdrew services for US residents back in 2019. In October 2019, US residents could no longer create Poloniex accounts, and in November 2019 Poloniex halted deposits and trades for US residents with existing accounts. Poloniex emailed US users advising them to withdraw their funds from Poloniex before December 2019.
Poloniex serves crypto investors around the world - but has some notable exclusions including the US and Ontario, Canada. As well as this, some countries may not have access to futures products. See the full list of prohibited countries.
No. Poloniex did not shut down, but the exchange did withdraw services for US residents in 2019. Poloniex remains operational for other crypto investors around the world.
Yes. Poloniex is considered a safe crypto exchange, but as with all large crypto exchanges, presents an appealing target for hackers and has previously been targeted. As such, you should always follow best security practices and store any crypto you're not actively trading in a secure hardware wallet.
Poloniex has not yet released a Merkle Tree Proof of Reserves. However, the exchange did release a statement following the FTX collapse stating that customer assets are always backed at a 1:1 ratio. Read the statement in full.
Yes, Poloniex has KYC, but the exchange has different verification levels. For level 1, customers need to only verify their email and password, but there are limited daily withdrawals and some other features may be unavailable. See more on the Poloniex verification tiers.