BitMEX Tax Reporting
TokenTax connects to BitMEX for easy crypto-currency trade tracking and tax filing.
How Bitmex tax reporting works
Bitmex is one of the most popular exchanges for crypto margin trading. Unlike typical spot crypto exchanges, you don’t actually buy or sell cryptocurrency on Bitmex; rather, you can enter long and short positions by buying and selling contracts for difference that represent bitcoin and altcoins.
Because you are trading contracts, you are not trading actual crypto. Crypto only serves as collateral for your margin position. If you open a position worth 1 BTC, you are not triggering a taxable gain or loss on that 1 BTC. Rather, you are taxed on any profits you make.
It is important that you report your taxes on Bitmex profits. TokenTax supports importing your margin trades from Bitmex via API key with a plan that supports margin trading.
Citizens of the U.S. and certain other countries are not allowed to use Bitmex. If I’m not allowed to trade on Bitmex, should I still report it on my taxes?
Yes, you should. Bitmex’s terms of service prohibit using their site if you are from a disallowed country like the United States. It’s their responsibility to ensure that you do not use their site. It’s more severe of an issue to not report gains you make on Bitmex than it is to report trading on an exchange that shouldn’t let U.S. users on their platform.
Uploading a BitMEX CSV with TokenTax
At the top right, to the right of where it says "Wallet," click "Save as CSV".
Importing a BitMEX API into TokenTax
Open the BitMEX API page (https://www.bitmex.com/app/apiKeys) by first clicking on your account name (email) the top right corner. Then, click Account and Security, and on the left sidebar, click API Keys.
Leave Key Permissions blank and Withdraw unchecked.
Click the Create API Key.
Copy your API key and secret to TokenTax (https://tokentax.co/import).