Will crypto exchanges like Crypto.com automatically report tax information?

sikke

sr. member

Activity: 504

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Quote from: FREDERIK_DIAMOND on September 08, 2021, 03:54:42 AM

When trading on a centralized exchange like Binance, Crypto.com, and all the others, will they automatically report tax statements to the CRS in Europe or will I have to do that myself?

In my country they don't automatically prefill that info to your tax return.

Generally, I think that capital gains is not automatically reported and you're much better off just use a third party crypto tax service that allows you to import trades into a portal and get out a detailed tax statement.

Never assume that something will be automatically filled for you when it comes to taxes. Even pre-filled info should be checked.

UKprod

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Let's create the Indie Metaverse!

This depends a lot on the country where you reside. Most exchanges may be made to mandatorily report crypto transactions to the authorities. Further, in relation to reporting of the transactions by individuals, it maybe mandatory irrespective of the exchanges reporting it. For example, you need to report your crypto gains on sale in your income tax returns.

zeuner

member

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Quote from: Poker Player on September 08, 2021, 04:16:37 AM

You have to think that there are people from all over the world who make transactions on the exchanges. It is not like a bank in a country that automatically reports X type of transactions to the tax authorities of that country. At least in the vast majority of cases you will have to declare it yourself.

With traditional banking-related taxation, there are cases where cross-national reporting is already reality (e.g. the European Savings Directive).

With cryptocurrencies, however, not even the tax-related circumstances under which the gains are treated are fully harmonized, which would make it hard to come up with a systematic, institution-centered way of cross-national taxation.

Poker Player

legendary

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If you are referring to whether the information will appear in the draft of the income tax return, I would say no in most cases. Coinbase reports to the IRS, but in other cases, like Bitstamp, simply reports gross proceeds to the authorities, and I understand that they only provide more information if the authorities request it.

You have to think that there are people from all over the world who make transactions on the exchanges. It is not like a bank in a country that automatically reports X type of transactions to the tax authorities of that country. At least in the vast majority of cases you will have to declare it yourself.

Kong Hey Pakboy

member

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Afaik, cryptocurrency isn't taxable in any way until it becomes a fiat so I don't think that Crypto.com is going for that route just to comply with the countries that their service works, pretty sure that the countries don't have any way to totally coerce/enforce what they want to Crypto.com so I don't that we have anything to worry about.

FREDERIK_DIAMOND

newbie

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When trading on a centralized exchange like Binance, Crypto.com, and all the others, will they automatically report tax statements to the CRS in Europe or will I have to do that myself?

Topic: Will crypto exchanges like Crypto.com automatically report tax information? (Read 79 times)