Binance announced that US based account holders will lose trading access on Binance in September in preparation for Binance launching a US based exchange. In addition, there may be certain assets which you should transfer off (to one of your wallets or exchange) in order to not lose access to them.
How to Prepare From a Tax Perspective
It sounds like US based Binance users will still have access to their accounts but may not have the ability to perform trades. Either way, we believe it is smart to pull all of your trade history files from the exchange to keep for your records and upload into ZenLedger.
Here are some quick instructions:
The Binance API will not give you a full year of historical data, so you have to download several different types of reports in csv format. Binance limits you to 3 months of data. To get a full year of transactions, you will need to download each CSV 4 times with different time windows. We suggest the following windows:
- January 1 to March 31
- April 1 to June 30
- July 1 to September 31
- October 1 to December 31
Although it seems that US users will still be able to access their accounts and generate reports once Binance cuts of trading for US investors in September, we believe it’s a good idea to be prepared for any outcome. Also, if you have assets on Binance that you are going to lose the ability to trade, you should move them into bitcoin or another cryptocurrency before the September deadline and move them to a different exchange or wallet.
ZenLedger allows you to upload your transaction history at any point during the year and we strongly recommend uploading any and all Binance history during the next few weeks. This will make tax season go much more smoothly for you and avoid any hiccups.