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- Koinly is asking its users to store their FTX trading record as a tax precaution in case the FTX website outages continue.
Koinly, a cryptocurrency tax calculator, has issued a statement encouraging traders to export their trading data immediately in the wake of the FTX meltdown. Since the FTX.com website has been intermittently down for the past 24 hours, Koinly is urging FTX customers to immediately export their entire FTX transaction history in case they lose access to this feature in the future. Great uncertainty still surrounds FTX’s future following its current crisis.
Why is Koinly doing this?
Whatever the fate of FTX, users will still need a complete record of their trades in order to properly declare any profits or losses on their cryptocurrency investments to the appropriate tax authorities. Investors still need to disclose any taxable crypto transactions done on FTX before the platform halts transactions. That won’t change regardless of whether FTX files for bankruptcy and/or puts a stop to all withdrawals during the legal proceedings. With Binance backing out of a bailout deal, speculation is rife that FTX could be forced to file for bankruptcy.
Koinly is offering a safety net for FTX.com traders, allowing them to easily export their entire trading history from FTX and save it in a safe place. Because of the safe API connectivity between FTX and Koinly, FTX users may quickly and easily import their transactions into Koinly and export a complete trade statement from FTX.
Users now have the option of manually exporting their financial statements from within FTX. Koinly has previously helped investors weather storms in the Celsius, Voyager and Terra Luna, during the companies’ respective financial crises earlier in the year. All FTX.com customers, regardless of where they live or file their taxes, will need to keep detailed records of all FTX trades and the taxman will likely not be willing to listen to excuses. More than a million FTX.com customers will be affected by this unexpected shift in the industry.
