However, binance just declared that all cryptocurrency exchange services will be blocked for users in the United States in the future. From a trade and tax compliance standpoint, this document explains how to prepare for the loss of access.
This announcement follows the exchange’s announcement that it will launch Binance, a separate service aimed at US citizens.
US. This is most likely due to the regulatory pressures of operating in the United States. It’s unclear when this new site will go live or which cryptocurrencies will be available.
According to the news, US customers will be unable to trade on Binance for 90 days beginning June 14th, 2019—that is, in September. Firstly “Users who are not in compliance with Binance’s Terms of Use will continue to have access to their wallets and funds, but will no longer be allowed to trade or deposit on Binance.com,” according to the release.
September deadline, you should convert them to bitcoin or another cryptocurrency.
Check out our entire Cryptocurrency Taxes Guide to discover more about how cryptocurrency is taxed.
If you are a Binance user with a US passport, you will no longer be allowed to trade once September arrives.
From a trading standpoint, here’s how to get ready.
If you trade on Binance, you should be informed of which assets you will no longer be able to trade.
The tokens shown in purple in the figure below are traded on other U.S. compliant exchanges, therefore you can shift these assets onto these exchanges. Tokens that aren’t highlighted in purple aren’t supported by any other exchange in the United States.
If you have substantial holdings in any of the non-highlighted tokens, you should move quickly before the September deadline. If you don’t, you risk being trapped with tokens that you can’t cash out. Don’t worry, our staff will send you another update ahead to the deadline to remind you.
From a tax standpoint, here’s how to get ready.
Users in the United States will still be able to view their Binance accounts, but they will be unable to trade. In any case, we think it’s a good idea to download all of your trading history files from the exchange for your records.
As a reminder, completing your crypto taxes without the necessary history data is nearly impossible, thus we believe it’s best to be cautious.
You have two options for getting historical data from Binance:
1. Open your CryptoTrader and run the API importer.
Account of taxation
Log in to your account and double-check that Binance is listed as an exchange on which you trade.
Binance account in the United States
Go to step 2 and provide your API keys to have all of your trades immediately imported into your account.
Tax reporting on Binance
Now that you have your most recent historical data in your account, you can easily run your crypto tax report once 2019 is over.
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2. Go to Binance.com and get your historical data files.
Binance, like the majority of exchanges, allows customers to export excel spreadsheet files that describe their entire transaction history on the platform. However, these may always be imported. XLSX files can be imported directly into CryptoTrader. You can simply prepare your tax reports at the end of the year by using a simple drag-and-drop tax account.
We recommend that you save these trade history files to a safe location for your records.
Log into your Binance account and follow the instructions outlined in this help post to get these files.
Report on Bitcoin Taxation
Free Tax Guide for Cryptocurrencies
To complete your bitcoin taxes, download our free step-by-step tutorial.
Final Thoughts
While it appears that US consumers will be able to access their accounts and create reports after September, we believe it is prudent to be prepared for any eventuality. On the other hand, if you have assets on Binance that you may lose the ability to trade before the September deadline, you should convert them to bitcoin or another cryptocurrency.
Check out our entire Cryptocurrency Taxes Guide to discover more about how cryptocurrency is taxed.
Disclaimer: This material is intended to provide general information only and should not be considered as tax or investment advice. Please consult your personal tax professional, CPA, or tax attorney for advice on how to handle digital currency taxation.
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