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Do cryptocurrency exchanges implement CRS/FATCA?

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7889

Mentor Group Gold
Bitfinex support fiat trading as well as usdt.
The simpliest way for report for exchanges is a make balance reports snapshot for date 31.12 at market rate for all crypto assets.

Maybe they are simplify report and send only fiat balance that was on 31.12 on the account, but its to simple way for avoid any summ in reporting, so I doubt exchanges will do this way.
Oh yes, they do actually, haven't checked in a while, have they started to accept fiat deposits this year? Then CRS questionnary was only logical of course. I only tried to withdraw usd from bitfinex once and it took 45 days.
 

7889

Mentor Group Gold
This is a very interesting point. Any idea if there are any trading platforms out there which allows you to trade (i.e. realise) your stock by way to exchanging it for another stock? Probably not due to the difficulty in matching a 1 to 1/whole number swap (else one party will make a transaction loss). But that is such an idea to explore.
I don't think it's possible with individual stocks (i never thought of it anyway), but mutual funds (aka unit trusts) of the same fundhouse (e.g. Blackrock or Fidelity) can be switched between each other directly. At least that's how it looks like at customer side, I wouldn't be surprised if "behind the curtains" one fund is sold and another is purchased, you are just presented with the end result, and i also would not be surprised if those hidden sale proceeds could actually fall under CRS scope. I know for sure, that even when you have mutual fund with reinvested dividends (i.e. you never actually receive dividends on your account, they are automatically reinvested back into the fund), those "invisible" dividends still fall under CRS and will be reported as your income.
 
It would be naive to think that they would only report your current income. and not your previous income.
Viable option you have right now is to create accounts with dark documents or buy a ready made stealth account and get your money for as long EMI's don't implement CRS. But like others have pointed out, it is only a matter of time before they implement it so we must enjoy the opportunity while it lasts.
 

fuorissimo

New member
I think that also When crypto are converted in Fiat, can't be under CRS.

Because user dont have personal bank account in Exchange, but all users money are in the same account, owned by Exchange.
 

TurnedToRobot

Entrepreneur
I think that also When crypto are converted in Fiat, can't be under CRS.

Because user dont have personal bank account in Exchange, but all users money are in the same account, owned by Exchange.
But sometimes it isn't enough to think even so you're a conehead. It's would be advisable to ask the EMI or exchange if they are going to report you or not.
 

fuorissimo

New member
I opened a ticket at Kraken, I'm waiting for a reply. When I get it, I'll let you know. My opinion is that at least for the moment, there is no obligation (Coinbase and Kraken, the others i do not know) CRS, because in their SUPPORT section, CRS is never mentioned.
 

clemens

Corporate Services
Mentor Group Gold
their SUPPORT section, CRS is never mentioned.
So you mean if they don't put this in their support section they don't report you? I would not put my trust in this. There was reported for some times (maybe 2 years ago) that banks have informed customers they don't report them and today they have all been reported :D I recommend everyone to have a look into this and make their own checks before they feel safe.

I know of unlicensed providers which guaranteed not report but they have only limited use.
 

fuorissimo

New member
I said something different: I sent a written request to Kraken just to get more clarification.

However, if they have to respect the CRS, they are obliged to communicate it because it is inherent to our privacy. They are obliged to write what they do with our data, even if they communicate it to national tax authorities
 

Gamblord

New member
In case they implement CRS:

- Would that implementation be retroactive? Meaning that they will report things prior implementation of CRS?
- Does CRS disclose total entry and exit of funds over a whole year or just account balance at 31st of Dec?

Balance on 31st. Same as CRS. We are talking about fiat and I doubt anyone keeps they money on exchange for more than a day.
 

Gamblord

New member
For good measure, I got to clarify with you that the crypto may not be reported if it is not considered a Financial Asset under the CRS definitions, refer to the OECD CRS Commentary, section VIII, para 23 oneards - Common Reporting Standard and related Commentaries - Organisation for Economic Co-operation and Development

If cryptos are not covered in the definitions or do not have the same characteristics as the definition provides, then its balance may not be reportable in the case of a custodial account.

I thought so. What if you withdraw USD from exchange?

My guess is that it matters where the exchange is. Bittrex is in USA (non-CRS) so it would be good if you are not American.

Also with CRS, my understanding is that they only report your fiat holdings on the last day of year or what you had when you closed your account.
 

erni

Mentor Group Gold
How is the situation right now with CRS and Crypto is anyone aware if they started reporting you or is it still not possible for them to do since so many wallets don't require any KYC to operate?
 

clemens

Corporate Services
Mentor Group Gold
WoW this is chocking news actually. Crypto should be excempted from such reporting stuff to stay free tradeable. Anyway, there will still be plenty of options to avoid the reporting in Cryptoland I don't think it will have any impact before in maybe 10 years.
 

JackAlabama

Entrepreneur
Any Infos about Binance Reports ? Its county Hong Hong ? Thank you
Cannot say for sure.
Do they allow you to hold fiat? If yes, then probably report.
Did you provide full kyc? if yes, then probably report.
Hk is a reporting country, so probably also yes.

However you cannot be sure about the data quality and effectiveness.
But I would avoid this stress and look for other methods and or move to a banana republic or tax haven.

If you cannot afford tax havens, then at least go to a banana republic. They can also be nice.
 

ernak

New member
Cannot say for sure.
Do they allow you to hold fiat? If yes, then probably report.
Did you provide full kyc? if yes, then probably report.
Hk is a reporting country, so probably also yes.

However you cannot be sure about the data quality and effectiveness.
But I would avoid this stress and look for other methods and or move to a banana republic or tax haven.

If you cannot afford tax havens, then at least go to a banana republic. They can also be nice.
Binance is a centralized cryptocurrency exchange located in Cayman Islands. Binance Trade Volume, Trade Pairs, and Info | CoinGecko
 

Timo

Active Member
i Have Stablecoins on Spectrocoin., Bitstamp, Binance and Coinbase
All Exchanger have FIAT Wallet but i have nothing in sso only Crypto Wallet
 
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