How to file your BTC Markets taxes with Koinly
How to do your BTC Markets taxes with Koinly
BTC Markets is an Australian crypto exchange that's particularly popular with large-scale investors thanks to its fee tier and API trading capabilities. If you're using BTC Markets to invest in Bitcoin and other cryptocurrencies, the ATO will want their cut of your profits by the 31st of October. If you need to learn how to calculate and file your BTC Markets taxes with the ATO, you're in the right place. Here's how:
Follow these steps to sync your BTC Markets data automatically to Koinly:
- Log in to BTC Markets.
- Select account.
- Select API key.
- Create a read-only API key.
- Copy your API key and secret and add them to Koinly.
- Create a free account on Koinly
- Complete onboarding until you get to the Wallets page and find BTC Markets in the list
- Select API > Paste the API keys you copied above in the appropriate box
- Hit Import and wait for Koinly to sync your data. This can take a few minutes
- Review your transactions on the Transactions page to ensure everything is tagged correctly and no missing data
- Go to the Tax Reports page to view your tax liability!
How are BTC Markets transactions taxed?
The tax you’ll pay on your BTC Markets transactions all depends on how long you’ve held your asset, how much you earn, and the specific transactions you’ve made - as well as where you live. You can learn all about it in our Australia crypto tax guide, but in brief, you’ll pay Capital Gains Tax or Income Tax, depending on your specific transactions:
Capital Gains Tax: If you sold or swapped crypto on BTC Markets, you’ll pay Capital Gains Tax on any gain. For short-term gains on assets held less than a year, you’ll pay between 0% to 45% in tax depending on how much you earn. For long-term gains on assets held more than a year, you’ll receive a 50% discount.
Income Tax: Meanwhile, if you earned new tokens from your investment activities on BTC Markets, the ATO generally views this as additional income and you may need to pay Income Tax upon receipt.
Outside Australia? Check out our other crypto tax guides to learn more!
Does BTC Markets report to the ATO?
Yes, BTC Markets may report to the ATO. As an AUSTRAC registered exchange, BTC Markets may be required to share customer data with the relevant government authorities including the ATO.
How do I file my BTC Markets taxes?
The ATO is very clear that if you're selling or swapping crypto on exchanges like BTC Markets - you'll need to pay Capital Gains Tax on any gains, as well as Income Tax on any additional income from crypto.
If you're a busy investor with a lot of transactions - it's a lot of work. But fortunately, a BTC markets tax calculator can help. To get started, you'll need your BTC Markets transaction history. Here's how to get it using API or by getting a CSV file of your transaction history.
Your frequently asked questions
Does BTC Markets have tax documents?
No, BTC Markets don’t provide a tax report, but you can get one using crypto tax software.
How do I get BTC Markets tax documents?
BTC Markets offers 2 easy ways to export your transaction history:
1. If you're using crypto tax software - the BTC Markets tax API is quicker and automatically fetches your transaction history. To connect, just log in to BTC Markets and select account then API key. Create a read-only API and copy your API key and secret, then paste these details into your crypto tax tool when you're adding a new wallet.
2. Prefer to use a CSV file? No problem. Log in to BTC Markets and select buy/sell, then trade history to export to CSV. Use your CSV file to calculate your crypto taxes yourself or upload it to a crypto tax calculator.
Does BTC Markets provide financial or end of year statements?
No, BTC Markets doesn't issue users with a financial or EOFY statement. Instead, you’ll need to get your BTC Markets transaction history, via CSV or API.
Do I have to pay taxes on BTC Markets?
Yes - you’ll pay tax on any capital gains or income from your BTC Markets transactions. And if you’re thinking of avoiding your taxes? Think again - the penalties are steep!
Is BTC Markets safe?
Yes. BTC Markets is regarded as a safe and secure crypto exchange with best security practices and has not been hacked to date.
Does BTC Markets have KYC?
Yes, BTC Markets is an AUSTRAC registered Digital Currency Exchange and requires users to complete KYC verification in order to use the platform.
Has BTC Markets published proof of reserves?
BTC Markets has not released a Merkle Tree proof of reserve, but the exchange may do so in the future to reassure customers their assets are safe. BTC Markets does state on its site that the exchange manages a full reserve and processes reconciliations regularly.
Which countries can use BTC Markets?
BTC Markets currently only allows Australian residents over the age of 18 to create an account.