Binance is the world’s largest crypto exchange by trading volume. It offers a range of services used by retail and institutional investors alike. Calculating your Binance taxes can be challenging, but we are here to make things easier.
This guide will explain how to connect your Binance with Cryptiony to automate cryptocurrency taxes.
Binance is a centralised exchange which allows users to buy, sell or swap crypto assets, along with many other services such as staking and lending. Platform users can deposit fiat currency or crypto onto the exchange, which is compatible with countless blockchains.
To calculate the taxes you owe on your Binance transactions, you will have to calculate Capital Gains and Income Tax generated from the platform.
You can do this by calculating each transaction’s tax or hiring an accountant, who could be expensive and inexperienced with crypto taxes.
Or, you could import your Binance transactions into Cryptiony and let our specialised software do the hard work.
The Cryptiony software will analyse each transaction and attribute it to either Capital Gains or Income Tax, as well as identifying transactions which are not taxable. It also deals with other complicated trading rules, such as cost-basing methods, so you do not have to.
Moreover, Cryptiony handles your crypto transactions from all exchanges from one easy-to-use dashboard!
The two main ways to import your transactions into Cryptiony are via an API or CSV file. Although the API method is more straightforward, sometimes, you may still need to use the CSV method. For example, if you are importing futures transactions older than three months.
Generate your Binance API keys
Log in to Binance.
From the Binance dashboard, click API management.
Enter a label key for your API, such as “Cryptiony integration”
Click create API.
Copy your API key and API secret to the Cryptiony integration.
Import your transactions
Sign up for Cryptiony.
From the Cryptiony dashboard, click transactions, then add transactions.
Select Binance, then integrate with the exchange API.
Input your Binance API keys into Cryptiony, then select integrate.
Finally, once you have imported your Binance transactions, you can head over to the taxes section to automatically calculate your taxes for the year.
As we mentioned earlier, sometimes, you might have to import your transactions as a CSV. Below is a step-by-step guide to downloading your Binance transactions and importing them to Cryptiony as a CSV file.
How to download Binance transactions
Log into your Binance account.
Click wallet, then from the dropdown box, select transaction history.
Next, choose generate all statements.
Enter your date range and click generate.
How to upload transactions to Cryptiony
Log in to Cryptiony.
From the dashboard, select transactions, then add transactions.
Click integrate the exchange on the top right of the screen.
Select Binance, then import the transaction file.
Select your Binance transactions CSV file and hit import.
Although the Binance API is excellent for crypto taxes, it does have some limitations. This is why we sometimes import the transactions via a CSV file.
The first limitation is trades of coins delisted on the Binance platform cannot be imported using the API. So if you have traded delisted coins within the tax year, you should import via a CSV file.
Secondly, you can only import internal transfers between spot, futures, margin etc., for the last six months. This is a Binance policy, and there is no workaround for it. Therefore, we recommend staying on top of your tax filing and updating it each month.
Finally, only dust to BNB conversions from after December 1, 2020, can be imported.
Yes, profits on Binance from your crypto assets appreciating or income earned through staking or providing liquidity is subject to tax in the UK and most other countries. Check out our UK crypto tax guide to learn more about what taxes you might owe.
The type of taxes you owe depends on how the profits were made. This is a complex topic best explained in our UK crypto tax guide. But in short, if Binance profits come from assets appreciating - you owe capital gains tax. But if they come from earnings, it's income tax.
If you report your taxes wrong, you should download a new tax return and fill it out correctly, with each page labelled amended. There is more information about this on the HMRC website. To ensure you file your taxes correctly, do not risk human error. Have a crypto tax accounting software such as Cryptiony connect to the Binance website and automatically do it for you.
You can either report your taxes manually using a self-assessment sheet in the post or by filling online. But this can be a painstaking task when processing hundreds of crypto transactions. Instead, the easiest method is to use Cryptiony, which automatically generates your tax report from Binance, leaving you only to submit the form online.
Binance uses KYC (know your customer) verification. The company is compliant with local authorities worldwide, and in the circumstances of an investigation, they would hand over your transaction history. Not reporting taxes is a crime in most countries and comes with severe penalties such as fines or jail time.
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