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.
Whatever your crypto investments, Koinly can help you do your KuCoin taxes safely, quickly, and accurately.
It's unlikely KuCoin reports to the IRS. KuCoin isn't licensed in the US and doesn't require KYC verification for many transactions. 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.
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 doesn't require KYC data for all transactions, so there's very little information the exchange could hand over to the ATO, or other tax offices.
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.
Wondering how to get your KuCoin API key? Easy. Here's how.
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. For those using KuCoin futures - this has a separate API which you'll need to integrate with Koinly in addition to the KuCoin API. See how here. If you're using APIs for both KuCoin & KuCoin Futures, then transfers to your Futures Account are imported via Futures API, you can just edit these transactions into transfers in Koinly to ensure correct calculations.
It's easy to get your KuCoin CSV files to upload to Koinly, just follow our instructions below.
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.
Problems with your KuCoin data import? We can help!
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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.
Wondering where the KuCoin headquarters are? KuCoin is based in Victoria, in the Seychelles, although the company has employees working around the world.
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.
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.
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:
Want to learn more about trading bots? Learn about the best trading bots in 2023.
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.
Wondering if there's mandatory KuCoin KYC? Unlike many other large exchanges, KuCoin doesn't require mandatory KYC - however, without verifying your account, you'll face withdrawal limits. There are several tiers of KYC available with different withdrawal limits.
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.
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.
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.
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.
No. But you can use your KuCoin trading history to calculate your crypto taxes yourself or with crypto tax software.
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.
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.
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.