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Introduction to BitMEX
BitMEX was founded in 2014. In 2016, the exchange introduced perpetual futures, which became its most popular derivative product. Recently BitMEX has diversified its offering and customers can now engage in spot trading and staking with its BMEX token.
If you have engaged in trading activity on BitMEX, there is a good chance that you need to go through the process of declaring crypto taxes. This guide will walk you through that process.
Do I need to pay taxes when using BitMEX?
BitMEX is popular for its derivatives trading using leverage. The result is that when you close a position, you incur either a realized profit or loss (realized PNL) which in most countries is a taxable event. Other transaction types such as spot trading and staking is often also considered to be taxable events.
How this is taxed can depend on the country and local tax authority, so please see Divly's crypto tax guides to find out how these types of transactions are handled in your jurisdiction.
Does BitMex provide tax documents?
Typically exchanges don't provide finalized tax documents for their customers, and BitMEX is no exception. It's hard for an exchange to build tax logic to serve customers from many jurisdictions. Hence, it's more practical for a customer to use a tax platform like Divly.
Step 1: Export your BitMEX transaction history
BitMEX allows users to export transactions via a CSV file or their API. We recommend taxpayers to utilize the API since the values provided are easier to deduce and automate for tax purposes. The CSV file does not provide the necessary data quality to efficiently calculate your taxes. Due to this, Divly now only supports the API from BitMEX.
| Transaction type | Automatic Import |
|---|---|
| Withdrawals | |
| Deposits | |
| Realized PNL | |
| Spot Trades | |
| Airdrops | |
| Interest Received |
Automatic import
You can import BitMEX transactions into Divly by connecting with the BitMEX API.
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Sign in to BitMEX.
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Click on the account icon on the top right and select API Keys in the dropdown.
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Type in the name Divly. Leave CIDR blank, Key Permissions blank, and leave Withdraw unchecked. Divly only requires read-only permission.
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Click the blue button Create API Key.
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Copy the API Key and API Secret into Divly.
File import
Make sure to download the CSV file every time you want to include the latest transactions.
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Sign in to Bitmex.
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Click on the Wallet icon in the navigation bar towards the top right.
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Click on Transaction History on the right side of the screen.
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Click the blue text Save as CSV in the on the right side just above your transaction history. Your file will download.
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Drag and drop the CSV file to where it says Upload CSV. Divly will import the transactions.
Important: For the full history only download the Transaction History file.
API export screenshot:
File export screenshot:
Step 2: Calculate your crypto taxes
After downloading your transaction history from BitMEX, the next step is to calculate your cryptocurrency gains and losses for tax purposes. You have several options for this task:
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Manual Calculation: Manually compute your taxes using Excel or similar spreadsheet tools.
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Tax Platforms: Utilize a service like Divly, which offers automated tax calculations for a nominal fee.
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Professional Assistance: Hire a tax lawyer, who is typically paid by the hour, to manage your tax calculations and tax filing.
Each method offers distinct advantages and challenges. Your choice will depend on your level of comfort with tax regulations, the complexity of your transactions, and the specific tax rules of your country.
Step 3: Declare your crypto taxes to the local tax authority
Once you have completed your tax calculations from your BitMEX activities, it's essential to submit them in a format that is compliant with the requirements of your local tax authority, as these requirements can vary significantly from country to country.
If you've chosen Divly, you're in for a streamlined process. Simply download your customized, automated tax report from Divly, which includes detailed instructions tailored to the tax laws of your selected country. This report clearly outlines what needs to be declared and where, based on your account's country of registration.
Common issues when calculating your BitMEX taxes
BitMEX has recently made large updates to their platform allowing users to trade and hold new cryptocurrencies. Users can also spot trade and earn interest on their crypto. However, the amounts in crypto have not been updated as necessary in their file exports. Please use the API for correct values. - updated 10th January 2024.
Should you have any inquiries about declaring your taxes from BitMEX transactions, our knowledgeable support team is ready to assist. Just click the chat icon at the bottom right of our website. We wish you a smooth tax filing process!
Any tax-related information provided by us is not tax advice, financial advice, accounting advice, or legal advice and cannot be used by you or any other party for the purpose of avoiding tax penalties. You should seek the advice of a tax professional regarding your particular circumstances. We make no claims, promises, or warranties about the accuracy of the information provided herein. Everything included herein is our opinion and not a statement of fact. This article may contain affiliate links.