Cryptocurrency exchange Huobi.com announced that it is shutting down operations to U.S. users. United States Huobi users have until November 13, 2019 to move their assets off of Huobi.com Users should connect their API’s to their TaxBit account or export their transaction history so that they have records of taxable transactions, per IRS requirements.
Exchanges shutting down can make it very difficult to comply with IRS requirements of preserving taxable information. Fortunately, this situation is not unprecedented and there are learning experiences to ensure this does not interfere with your tax filing. In May of 2019 it was announced that Cryptopia was closing down. Poloniex also recently removed functionality for United States users. Many cryptocurrency traders assumed that since they no longer had assets on these exchanges that they did not need to take any further steps prior to the exchange closing. Because many exchanges shut down and did not have proper tax reporting, most of the transactional data that is necessary to complete taxes have been lost. This leaves taxpayers with the obligation to try to reconstruct their trading history through bank statements and receipts, which in some cases can be a near impossible task.
To avoid these problems United States users must export their Huobi transaction history. This file will upload right into your TaxBit account. Alternatively, you can also connect your API from Huobi. This two minute process of exporting your trade history can save you hours of anguish come tax season. If you have any questions then please reach out to TaxBit support.
-Written by Cryptocurrency Tax Attorney Justin Woodward