I used an exchange that is banned to US customers. What happens if I report that on my taxes?

In recent years, new US regulations have been released surrounding cryptocurrency; as a result many popular exchanges are no longer available to US citizens. The list of prohibited exchanges includes Binance, BitMex, and FTX.

We understand losing access to these exchanges may cause concern for many of our users. You might be asking the question—what does this mean for my taxes? Rest assured, you will not be penalized for reporting transactions that took place on a banned exchange. 

When you report capital gains and losses on your 8949 tax form, only the name of your coin or token, the dates on which you acquired and disposed of it, and information about how much you gained or lost on a given transaction is reported. The IRS only requires that you report what your gains and losses were for a given tax year; you aren’t required to disclose where the transaction took place.

If you need help bringing in your transaction history from any of these exchanges, we have a number of resources available to help you out. Check out our Help Center HERE for more information on managing and adding transactions.

Still have questions? Send us an email at support@taxbit.com or chat with us using our live chat feature, and we'd be happy to help!