How to file your Binance taxes with Koinly

The largest crypto exchange in the world  - Binance helps millions of crypto investors buy, sell, and trade crypto every day... and much, much more.

As well as being able to buy crypto with a credit or debit card, investors can also access a huge range of products including margin trading, P2P trading, futures trading, leveraged tokens, options, staking, earn products, liquidity farming, and DeFi staking. Users can also get a Binance Card to spend crypto, take out crypto loans, and buy, sell, and trade NFTs.

How to do your Binance taxes with Koinly

Koinly can help you do your Binance taxes safely, quickly, and accurately. All you need to do is sign up to Koinly and connect Binance automatically using API or by uploading a CSV file. Koinly will then calculate your Binance gains, losses, income, and more, before generating your crypto tax report.

CSV

Follow these steps to sync your Binance data automatically to Koinly:

  1. Log in to Binance.
  2. Go to the Binance API management page.
  3. Select Create API
  4. Complete the 2FA.
  5. By default, only the read permission will be granted. Make sure that no other permission has been granted to the API keys and that there is no IP restriction
  6. Copy the API key and API secret to Koinly


Note:

Binance also has a special Tax Report API, which will also work with Koinly. However, the Tax Report API will not allow full access to the Futures transaction history, which is why we recommend creating the regular API keys instead.


Subaccounts

If you use subaccounts with Binance, you will need to import this data as well.

If using API, create separate API keys for each subaccount. Add them to separate Binance wallets in Koinly.

Please check your Transfers between the main account and your subaccounts, as these may need to be added manually.

On Koinly:

  1. Create a free account on Koinly
  2. Complete onboarding until you get to the Wallets page and find Binance in the list
  3. Select API > Paste the API keys you copied above in the appropriate box
  4. Hit Import and wait for Koinly to sync your data. This can take a few minutes
  5. Review your transactions on the Transactions page to ensure everything is tagged correctly and no missing data
  6. Go to the Tax Reports page to view your tax liability!
Notes / Limitations
  • If you have enabled Futures on your account then you may receive emails and SMS messages when Koinly is syncing your transactions
  • Convert trades are only imported starting from 2021
  • Dust conversions are only imported for the last 1 year
  • Commission rebates are not provided by the API
  • Bot trades and NFT trades are not provided by the API
  • Because of Binance limitations, the API can take up to an hour to fully sync
Having trouble connecting Binance with Koinly?

If you're using Binance US - your steps will be slightly different. See our full guide on how to do your Binance US taxes.

Is Binance safe?

Yes, Binance is widely regarded as a safe crypto exchange by its users. As the leading crypto exchange worldwide, Binance has excellent security measures including offline cold storage, real-time monitoring, and advanced data encryption. For user security, Binance offers features like wallet whitelisting, sign-in protocols like 2FA, and opt-in security notifications. However, you should always follow best security practices and keep your crypto in an offline, secure wallet when you're not actively trading.

Does Binance report to tax offices?

In short - yes. The majority of tax authorities around the world including the IRS are taking a similar hard stance on crypto tax evasion. They're working with major exchanges operating in their country to share KYC information and ensure taxpayers are paying their fair share. As Binance is the largest crypto exchange worldwide, it is very likely they have been contacted by multiple tax authorities to share customer information.

Does Binance send tax forms?

No - and for good reason. Binance serves millions of users worldwide, meaning the exchange would need to be able to generate a huge number of tax forms in order to serve all its users! However, you can use a crypto tax calculator like Koinly to get your Binance tax forms easily.

How do I get my Binance tax documents?

To include your Binance crypto investment activity in your annual tax return you'll need to calculate and report any income or capital gains - or losses - you made throughout the year.

You can do this in one of two ways. You can either do it yourself, by identifying your taxable transactions, calculating your net capital gain or loss, and the fair market value of any crypto income.

Or, you can use a crypto tax calculator like Koinly. Koinly calculates your income and gains or losses for you and automatically generates your Binance tax report, ready to file with your tax office.

Koinly works by importing your Binance transaction data to analyze what's taxable, and what's not. Let's look at an example - here are some transactions in a Binance account.

Transactions in BinanceYou can import your Binance transaction history via API integration or by uploading CSV files of your Binance transaction history. Once you've done this, you'll be able to see your Binance transactions in Koinly - like this.

Transactions in Koinly

Your frequently asked questions

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