October 18th, 2019, Poloniex announced their spin out from Circle into a new company, Polo Digital Assets. This will allow them “to focus on the needs of global crypto traders with new features, assets and services.”
While for some clients that might sound like exciting news, for US based customers of Poloniex it is an alarm to withdraw their assets from Poloniex, since they are not included in the spin out. “Unfortunately, in order to be competitive in the global market, we will not be able to include US customers in the spin out, so Circle will be winding down operations for US Poloniex customers,” – the announcement says.
Poloniex establishes the following timeline for its US based customers:
October 18, 2019 – US clients are no longer able to create accounts on Poloniex.
November 1, 2019 – US clients are no longer be able to execute trades on the exchange.
December 15, 2019 – US clients should withdraw their assets through Circle.
How to Prepare From a Tax Perspective
US based customers will still have access to their accounts and can withdraw funds until at least December 15, 2019. However, we advise you pull all of your transaction history files from the exchange to keep for your records and upload into ZenLedger.
Here are some quick instructions:
- Login into your Poloniex Account
- Open “Balances” over the top navigation (https://poloniex.com/depositHistory)
- Download deposit file (Export Complete Deposit History.csv) and withdrawal file (Export Complete Withdrawal History.csv)
- Navigate to the Trade History link (https://poloniex.com/tradeHistory)
- Download trade file (Export: Complete Trade History.csv)
- Upload your CSV files into ZenLedger
Poloniex is not 100% clear about whether the December 15, 2019 deadline will be extended. The announcement states that US customers will be able to withdraw their assets through Circle “until at least December 15, 2019”. It is smart to get ready before this date.
You should move your crypto from Poloniex to a different exchange or wallet before this deadline. You should also pull your entire transaction history before then.
ZenLedger allows you to upload your transaction history at any point during the year and we strongly recommend uploading you complete Poloniex history during the next few weeks. The 2019 Tax season is quickly approaching, and this will make your tax preparation go much more smoothly for you. This will also help you with tax loss harvesting at the end of 2019- which can greatly benefit your tax liability.
ZenLedger simplifies the tax reporting process for digital currencies by importing transactions and automatically making these time-consuming calculations. You can even auto-fill popular IRS forms and determine if it’s tax advantageous to sell existing digital currencies to realize the tax loss and minimize tax exposure — known as tax loss harvesting.