How to File CoinSpot Taxes?
CoinSpot is a leading Australian exchange supporting more than 150 different digital currencies with the Australian Dollar (AUD). Founded in 2013 by Russell Wilson, CoinSpot offers an in-built multi-currency crypto wallet including a CoinSwap feature allowing users to swap any of their coins easily. It is one of the best exchanges for Australian users. In this guide, we will give you a general overview of the exchange and discuss the CoinSpot tax reporting process.
Connecting your CoinSpot Address to ZenLedger For Your CoinSpot Tax Forms
As one of the most comprehensive cryptocurrency tax software options on the market, we have import instructions for well over 500+ exchanges.
Within ZenLedger, on the Import Transactions page and Exchanges tab, select the Exchange you want to import. Then you'll see a table that outlines the possible methods. We support a direct API code import for many centralized exchanges, while others may require a CSV import. Decentralized exchanges may require a wallet address.
To import your transactions from an exchange, simply navigate to the "Exchanges" tab of the "Imports" page. Select the exchange that you are looking to import, and instructions will be provided for that specific exchange!
CoinSpot offers a safe and reliable platform for traders/investors to buy/sell/exchange cryptocurrencies. The exchange becomes the official member of the Australian Digital Commerce Association (ACDA), the country's leading council and representation of and for digital currency businesses. Here are some of the points that work for and against CoinSpot.
- Supports more than 150 tokens with AUD
- Easy asset exchange using CoinSwap
- Easy User Interface
- Free withdrawals of AUD to a bank account
- Round the clock customer support and tax assistance
- Only for Australians or for people with Australian Bank accounts
- Limited use for new users
How to Set Up Your Account?
To trade on the exchange, you need to open an account, which is an easy process:
- Go to https://www.coinspot.com.au/
- Put in your email address and press the “Get Started” button
- The next page will ask you to choose a password and after proving that you are not a robot, click on “Create Account”
- Next, you’ll get a verification mail in your inbox, verify your email address
- To verify your account, you’ll have to enter your personal information
- To finish your KYC, upload all the required documents, a selfie, and a one time code that you will receive
- After verifying your identity, you can deposit your funds from any of the available methods and start trading.
Is CoinSpot Safe?
CoinSpot is one of Australia’s safest crypto exchanges. The exchange complies with AUSTRAC's enforced new Anti-Money Laundering laws. And as mentioned earlier, CoinSpot is a member of the Australian Digital Commerce Association.
CoinSpot’s verification process is fairly strict allowing only verified users to trade on the platform. But, once you are verified, you can do quick transfers and have higher trading limits.
CoinSpot uses a multi-crypto wallet system, which provides a wallet for every token. More importantly, they offer bank-level security measures meaning the chances of this exchange getting hacked is low. The exchange also offers a two-factor authentication beefing up the security even more.
How to Pay CoinSpot Taxes on Crypto?
The Australian Taxation Office (ATO) considers crypto as property and crypto is subject to income tax and capital gains tax.
Income tax events: If you stake or mine cryptocurrencies and you earned a reward from it, it will be deemed as ordinary income and taxed on the fair market value at the time of receipt.
As of now, you cannot mine or stake crypto on the CoinSpot exchange, but if you transfer crypto earnings from a different exchange on CoinSpot, you’ll need to account for those transactions.
Capital gains events: Every time you sell crypto tokens, it triggers a taxable event. When you sell, you either book a profit or loss also known as capital gains or losses. These gains and losses have to be reported with the ATO.
To minimize your taxes, you can take advantage of the holding period. If you hold your tokens for more than a year, you get a 50 percent discount on your CoinSpot taxes.
Does CoinSpot Report to the ATO?
The ATO announced in 2019 that it would collect records of all the taxpayers from major Designated Service Providers (DSPs), but the names of any specific exchanges were not mentioned. However, as CoinSpot is one of the most popular exchanges in the country, it is very likely to be on the list of DSPs.
Why Haven’t I Received All My Tax Records From CoinSpot?
A majority of crypto investors use several exchanges, platforms, and wallets. CoinSpot cannot track the transactions held on other exchanges and platforms, making it difficult for the exchange to determine your gains or losses.
For instance, if an investor uses a different exchange to buy Bitcoin and then transfers it to CoinSpot, CoinSport will not have any pieces of information about the original cost basis of the purchased Bitcoin. Therefore, CoinSpot won’t be able to provide complete information regarding capital gains and losses.
However, if you want the record of your entire crypto transaction history, you can use ZenLedger. Along with CoinSpot, the platform can connect with more than 500 crypto exchanges making it easy for you to see the entire transaction history in one spot.
CoinSpot is a leading crypto exchange in Australia. It is fully compliant with the Australian financial laws and offers top-notch security, making it a reliable exchange for both beginners and experienced traders. This incredible platform has plenty of trading options for its registered users such as a wide range of tokens for trading, different payment and withdrawal methods, a desktop and mobile app, and much much more.