How to do your Phemex taxes in 2022
Introduction to Phemex
Phemex is a cryptocurrency platform that was founded in 2019 by eight former Morgan Stanley Executives. Phemex focuses on a “User Oriented” approach to improve their platform so that traders can easily buy & sell contracts with trust. Phemex allows crypto trading backed by crypto assets and traditional financial assets, such as stock indexes and interest rates.
Phemex also designed their own Hierarchical Deterministic Cold Wallet System. It gives each user a unique deposit address, so that assets are kept in cold wallets (offline crypto storage). Collection and transferring of Bitcoin are all conducted via offline signature with double checking done by the Phemex staff. This allows for funds and transactions to be privately, securely managed .
Do I need to pay taxes when using Phemex?
Depending on the country you pay taxes in and the type of transactions you have made, you may need to pay taxes on your Phemex crypto transactions. If you are unsure, you can try Divly's Crypto Tax Widget which can give you a better indication based on your country's tax rules.
For more information regarding your country-specific crypto tax guidelines, please see Divly's crypto tax guides. These guides are regularly updated with input from our knowledgeable staff and local experts.
Divly does not currently support the use of the Phemex API but plans to do so in the future.
API Step-by-Step Guide
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Login in to you Phemex account.
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From the dashboard, click on your account icon, and then select the API Management from the drop down menu.
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Then click on Create New API; name your API, put _ as the IP address, and set permission to read only, then click confirm.
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From there copy and past the generated API key into Divly to link your account.
You can import Phemex transactions into Divly by downloading and importing a CSV file. Make sure to download the CSV file every time you want to include the latest transactions.
Important:
Currently contracts, investments are not supported. If you have a file with contracts feel free to send it to us and we will happily work with you to support them in the future.
Phemex also only typically allows you to generate 3 months of data in each CSV. Make sure to download enough CSV's to include all your transactions.
Step by step guide:
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Sign in to Phemex.
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Deposit CSV: Hover over Assets in the top navigation menu and click Deposit. Click on the small link that says View All next to Recent History. Click on Export Deposit History and the CSV file will download.
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Withdrawal CSV: Hover over Assets in the top navigation menu and click Withdrawal. Click on the small link that says View All next to Recent History. Click on Export Withdrawal History and the CSV file will download.
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Spot Trade CSV: Hover over Assets in the top navigation menu and click Spot History > Trade History. Click on Export Spot History and the CSV file will download.
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Drag and drop all the CSV files to where it says Upload CSV. Divly will import the transactions.''
Phemex transaction types
We have categorized Phemex transactions and their available export method in the below table. We have also provided information about how these transactions are handled when imported into Divly for relevant users.
| Transaction type | File Import |
|---|---|
| Withdrawals | |
| Deposits | |
| Trades (Spot) | |
| Trading Fees | |
| Realized PNL (futures) | |
| Investments |
Withdrawals
Withdrawals refer to crypto transactions sent out of a Phemex account. If you sent your crypto to another crypto wallet you own, make sure it is matched as a Transfer to avoid it being treated as a sale. If the withdrawal refers to a P2P trade, gift, buying goods/services, or another transaction type, please label it accordingly when using Divly. The transaction type applied can affect your taxes.
Deposits
Deposits refer to crypto transactions being sent to your Phemex account. If you received crypto from another crypto wallet you own, make sure it is matched as a Transfer to avoid it being treated as a purchase. If the deposit refers to a received gift, mining income, or another transaction type, please label it accordingly when using Divly. The transaction type applied can affect your taxes.
Trades (spot)
Crypto trades refer to crypto being purchased for fiat, crypto being sold for fiat, or trading one cryptocurrency for another.
Trading Fees
Fees are included in the trade and will be paid in either fiat or a cryptocurrency, depending on the trade. Make sure to apply the fee in your tax calculations, as it can help reduce your taxes. If you use Divly, this will be handled automatically for you.
Realized PNL (Futures)
Realized PNL refers to profit to agreements to buy or sell an amount of an underlying crypto between two counter-parties at a specific price at a specific date and time at some point in the future. Future trading allows for you to gain exposure to a wide range of cryptocurrencies without ever having to purchase them. It can also be used to hedge exposure against market movements.
Investment
Investing in cryptocurrencies gives the investor ownership of some of the platform by giving voting rights or a guaranteed share of earnings.
Common issues when calculating your Phemex taxes
If you have any issues with calculating your Phemex taxes, feel free to contact our support team which is available via the online chat on the bottom right hand corner of our website. Good luck!
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.