Bitfinex Tax Reporting

TokenTax connects to Bitfinex for easy crypto-currency trade tracking and tax filing.

Bitfinex crypto exchange

Background on Bitfinex exchange

Bitfinex is one of the oldest cryptocurrency exchanges, founded in 2012 and owned by iFinex. Based in Hong Kong, it has remained in operation through several historical hacks and is focused on global liquidity providers and professional traders. 

Bitfinex offers over-the-counter (OTC), margin, and derivatives trading services. The exchange also offers staking and peer-to-peer (P2P) financing services. With its advanced trading platform, Bitfinex offers a full suite of professional charting and signaling tools. The platform features are more tailored towards institutional and professional investors.

Bitfinex closed to United States users in 2018 — do I still need to include previous trades on my tax forms?

While Bitfinex closed its trading platform to United States residents in 2018, you still need to include any pre-closure trading activity in your tax calculations to accurately determine your total capital gain or loss. This is because the purchase price of your trades needs to be tracked back to your first trade from fiat into crypto to accurately determine how much you owe. Without the initial purchase price, your tax bill may be overstated.

Learn more about accounting methods and how the initial purchase cost of your crypto is factored into your tax bill in our accounting methods article.

Your crypto trading activity on Bitfinex is taxed

In most countries, national tax authorities tax cryptocurrency transactions. Each trade you make on Bitfinex from either crypto to crypto or crypto to fiat realizes capital gains or losses. You need to report each of these transactions on your tax forms.

Notably, this process can be arduous if you are day trading or have your own cryptocurrency fund. Especially if you are trading on multiple platforms, aggregating your transactions and calculating your tax bill requires a lot of planning an organization.

We recommend using crypto tax software to automate the entire process from uploading your transactions to calculating your tax liability to exporting your completed tax forms. Additionally, if you are starting your own fund, it is best to have a tax partner from day one to track your tax liability and teach you ways to minimize your tax bill.

Some national tax authorities have provided guidelines on cryptocurrency derivatives and margin trading activity. Typically margin lending is considered separately from trading activity for tax purposes. Our software provides full support where there are clear guidelines and a conservative approach when there are grey areas in the guidance provided by national regulators. 

Please see our international tax guides for more information on the tax requirements for your country of residence. 

Staking rewards are taxed

Most national tax authorities consider rewards earned through staking as income to be reported on your taxes. Depending on your country of residence, these taxes may function differently, so it is best to consult our international tax guides and contact us on our chat function about your specific tax situation. 

FBAR considerations for Bitfinex

Since Bitfinex previously allowed United States users before 2018, you may need to file a Foreign Bank Account Report (FBAR) disclosure if you are a U.S. resident and still have holdings on Bitfinex.

Uploading a Bitfinex CSV with TokenTax

Bitfinex trade transactions:

IMPORTANT: If you have margin trades, you will need to connect an API key to supply all needed data.

  1. Hover over the silhouette icon at the top right, click Account, and then on the left sidebar, click Reports (https://www.bitfinex.com/reports).

  2. Click on Trades under the Trading section.

  3. On the top left corner, click the calendar icon. Select a custom date range encompassing all your trades.

  4. Important: You must select YY-MM-DD for the date format.

  5. Click View then Export.

  6. You will receive your CSV file by email. Save and then upload your CSV file to TokenTax.

Bitfinex deposits/withdrawals

  1. Hover over the silhouette icon at the top right, click Account, and then on the left sidebar, click Reports.

  2. Find Deposits and Withdrawals under the Movements section. Repeat the following steps for both deposits and withdrawals.

  3. Click Deposits or Withdrawals and then on the top left corner, click the calendar icon. Select a custom date range encompassing all your trades.

  4. Important: You must select YY-MM-DD for the date format.

  5. You will receive your CSV file by email. Save and then upload your CSV file to TokenTax.

Importing a Bitfinex API into TokenTax

  1. Open the Bitfinex API (https://www.bitfinex.com/api) page by using the User Settings dropdown at the top right and clicking API.

  2. Click Create New Key.

  3. Keep the default permissions unchanged (all read permissions enabled).

  4. Enter a label for the API key.

  5. Click Generate API key.

  6. Confirm the new API key from the verification email you receive from Bitfinex.

  7. Copy your API key and API secret to TokenTax.

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