Cryptocurrency exchanges around the world are starting to report more and more information to government agencies. In this guide, we analyze Kraken’s tax reporting policies within United Kingdom. We’ll also break down a simple way to report your Kraken taxes in minutes.
Does Kraken report to HM Revenue & Customs (HMRC)?
Yes. HMRC has requested UK taxpayer information from the largest exchanges operating within the country. Kraken has provided contact details for UK users who have greater than £5,000 of crypto on its platform.
What does HMRC do with the information that Kraken provides?
HMRC has used data matching to crack down on crypto tax fraud. By using information provided by exchanges like Kraken, HMRC is able to track crypto transactions and identify individuals who have not met their tax obligations.
Do I have to pay taxes on my Kraken transactions?
Yes. In the UK, your transactions on Kraken or other platforms are subject to capital gains tax and ordinary income tax.
If you’ve earned or disposed (ex. Sold or traded away cryptocurrency) during the year, you’ll have a tax liability to report to HMRC.
For more information, check out our complete UK guide to cryptocurrency taxes.
Is Kraken legal in the UK?
Yes.In the United Kingdom,Kraken is regulated by the Financial Conduct Authority (FCA) and holds the status of a crypto asset firm and an authorized futures trading venue.
How do I avoid Kraken taxes in the UK?
Get a Kraken tax report today
Looking for a simple way to report your Kraken taxes? With CoinLedger, you can import your Kraken transactions and auto-generate a complete gains, losses, and income tax report in minutes.
CoinLedger integrates with Kraken and dozens of other wallets, blockchains, and cryptocurrency exchanges to automate the entire crypto tax reporting process.
You can get started with a free preview report today.
FAQs
Does Kraken report to HM Revenue & Customs (HMRC)? Yes.
Does Kraken report transactions to IRS? ›
Yes, Kraken shares data with the IRS and will be sharing past user data as well. Kraken's retroactive data-sharing with the IRS stems from a legal battle initiated by the tax agency in May 2021.
Does Kraken report to government? ›
Kraken complies with all US IRS regulations. If you have received a Form 1099-MISC, Form 1099-NEC or Form 1099-INT then this information has been reported to the IRS. All of the information shown on your form is shared with the US IRS and the state tax agency of the state of your residence.
Is Kraken regulated in the UK? ›
In the United Kingdom, Kraken operates locally as a Financial Conduct Authority (FCA) Registered Cryptoasset Firm ('Payward Ltd. ', FRN 928768) under the Money Laundering Regulations.
Do you get taxed on Kraken? ›
In general, you must pay either capital gains tax or income tax on your cryptocurrency transactions on Kraken. Income tax: Earned cryptocurrency on Kraken, such as staking, interest, bonuses, and referral rewards, is typically seen as taxable income from a tax perspective and must be reported in your tax return.
Which crypto platform does not report to IRS? ›
Some cryptocurrency exchanges do not report user transactions to the IRS, including: Decentralized crypto exchanges (DEXs) like Uniswap and SushiSwap.
Can the IRS see my crypto wallet? ›
Cryptocurrencies are traceable, with transactions recorded on a public ledger accessible to the IRS. The IRS uses advanced methods to track crypto transactions and enforce tax compliance. Centralized exchanges provide user data to the IRS.
Is Kraken safe for US citizens? ›
Kraken remains one of the very few leading regulated exchanges that has never been breached. Nevertheless, it's recommended that users never hold all their funds on any single crypto exchange. With DeFi protocols, a user's assets are held in smart contracts written and deployed by a protocol's development team.
Is it safe to keep money in Kraken? ›
Crypto Security
We use advanced cold storage and hot wallet solutions to secure your funds. Our crypto infrastructure resides in secure cages under 24/7 surveillance by armed guards, alarm systems and CCTV monitoring. Kraken was one of the first exchanges to receive a Proof of Reserves audit.
Is Kraken being investigated? ›
U.S. Crypto Exchange Kraken Is Under Federal Investigation, Suspected Of Violating U.S. Sanctions- NYT.
By using information provided by exchanges like Kraken, HMRC is able to track crypto transactions and identify individuals who have not met their tax obligations.
What countries is Kraken banned in? ›
Requirements. To use the Kraken app, you will need to verify your account to Intermediate or Pro level. The app is available in all regions except Crimea, Donetsk, Luhansk, Cuba, Iran, North Korea and Syria.
Which country does Kraken belong to? ›
Kraken (legally named Payward, Inc.) is a United States–based cryptocurrency exchange, founded in 2011. It was one of the first bitcoin exchanges to be listed on Bloomberg Terminal and was valued at US$3 billion in January 2024.
Does Kraken report to CRA? ›
Yes. In Canada, your transactions on Kraken and other platforms are subject to income and capital gains tax.
Does Coinbase report to HMRC? ›
Yes, Coinbase exchanges report to HMRC. They comply with UK regulations and share information about user transactions and holdings to ensure tax compliance. This data helps HMRC track taxable activities and ensure accurate tax reporting by cryptocurrency users.
Does Binance share information with HMRC? ›
Does Binance Report to HMRC? The HMRC (Her Majesty's Revenue and Customs) is the UK's equivalent to the IRS. Currently, the HMRC has to state that they have notified Binance to share customer data. However, they have requested customer information from Coinbase, eToro, and CEX.io.
Do crypto transactions get reported to IRS? ›
If you have digital asset transactions, you must report them whether or not they result in a taxable gain or loss.
Has Kraken been audited? ›
Kraken's audit reports stated customer cash of $30.8 million (in 2020) and $33.6 million (2021) appeared in the exchange's corporate accounts. At times Kraken has held up to $5 billion in customer cash.
Is Kraken under investigation? ›
U.S. Crypto Exchange Kraken Is Under Federal Investigation, Suspected Of Violating U.S. Sanctions- NYT.
How to get tax report Kraken? ›
CSV file import - how to get tax statement from Kraken
- login to Kraken.
- from the top navbar, click History.
- from the sub-navbar, click Export.
- in the first dropdown, select Ledgers.
- enter a From date that is earlier than your first transaction.
- enter the current date for the To date.
- click Submit.
