BitMEX is a popular and secure crypto exchange - particularly for investors looking to trade derivatives with low fees for BMEX stakers. Whatever your BitMEX investments, Koinly can help with your crypto taxes. Here's how.
Crypto tax varies depending on where you live, and you can learn more in our crypto tax guides. This said, generally speaking, two taxes may apply to your crypto transactions, including BitMEX transactions:
BitMEX isn't available in a range of countries due to confusing or lackluster regulations around crypto derivatives. If BitMEX doesn't operate in your country, it's unlikely the exchange is reporting to your tax office. However, as a large exchange, that doesn't mean BItMEX hasn't faced pressure from government agencies including tax offices to comply with customer identification regulations.
Notably, before withdrawing services in the US, FinCEN fined BitMEX $100 million for violating the Bank Secrecy Act (BSA) by providing money transmission services but failing to implement and maintain a compliant anti-money laundering program and customer identification program.
You'll need to calculate and report any capital gains or income you made on BitMEX with your tax office. For most taxpayers, this happens as part of their annual tax return.
There are a couple of ways you can do this:
With Koinly, all you need to do is connect automatically using API or by uploading a CSV file of your BitMEX transaction history. Here's how.
You'll need to start by downloading a CSV file of your complete transaction history from Bitmex. Here's how.
Now you've got your CSV file, here's how to upload it to Koinly.
1. When downloading your CSV files, check that the file covers your full trading history.
2. Don't forget to tag any income according to your country's tax rules.
Problems connecting BitMEX and Koinly? No worries - there's help at hand:
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No. BitMEX does provide users with tax document. Instead, you'll need to calculate any capital gains or income from BitMEX yourself using your transaction history, or use crypto tax software to do it for you.
The easiest way to get your BitMEX tax documents is to connect to crypto tax software like Koinly, either by API or by uploading a CSV file of your transaction history. Koinly can then calculate your BitMEX capital gains and income for you, and generate a crypto tax report which you can use to file with your tax office.
No. BitMEX does not provide financial or end of year statements. You can, however, export a CSV file of your transaction history on BitMEX.
Yes. Tax offices around the world have made it clear crypto is taxable. Although the rules vary depending on where you live, you'll generally need to pay Capital Gains Tax on any gain when you sell, swap or spend crypto, and Income Tax whenever you earn additional tokens. You can learn more about crypto tax where you live in our crypto tax guides.
Tax on crypto derivatives varies depending on where you live and how you're viewed as an investor - but generally speaking, profits from crypto derivatives will be subject to tax. Learn more in our crypto derivatives guide.
BitMEX is a top 50 exchange and used by hundreds of thousands of investors worldwide every week and follows best security practices for crypto including multi-sig cold storage and industry strength cryptography key management. However, you should always make sure you're aware of the risks of investing in crypto - in particular the unique, high risks involved in crypto derivatives - before you invest.
BitMEX operates worldwide, but there are a few notable exceptions including the US, UK, Russia, and particular providences in Canada. See the full list of restricted jurisdictions.
No. BitMEX withdrew operations for US residents after the exchange faced legal issues with a variety of government authorities over failure to comply with regulatory requirements. Specifically, the Financial Crimes Enforcement Network (FinCEN) fined BitMEX $100 million in 2021 after claims the exchange operated as an unregistered futures commission merchant and provided money transmission services while failing to implement an anti-money laundering program and customer identification program, as required by the Bank Secrecy Act (BSA).
The United Kingdom is not on BitMEX's list of restricted jurisdictions, however, following a general crackdown on crypto derivatives from the FCA, the exchange has drawn attention from authorities including the FCA. The FCA has issued a warning on BitMEX for UK consumers following a ban on crypto derivatives. BitMEX gives the following notice for UK investors on its site, "HDR Global Trading Limited and its affiliates (the “HDR Group”) are not authorised or regulated by the UK Financial Conduct Authority (“FCA”) or other UK authority. Nothing in this website is intended to constitute the marketing or promotion of HDR's services. By using HDR Group's services (including this website) you acknowledge that: You are doing so on the basis of your own enquiry, without solicitation or inducement by HDR Group Consumer protections under UK regulations do not apply to services provided by HDR Group because it is not regulated in the UK and provides services from outside the UK; and You have read our Risk Disclosure Statement and have the necessary knowledge and experience to understand the risks involved. Please note that the UK FCA does not consider crypto derivative products suitable for retail investors."