Action required: Margin trades in spot markets need recalculation

We changed the calculation method of margin trades in spot markets to follow the latest instruction published by the National Tax Agency of Japan. If you have traded margin in the past, please read the following instruction.

 

Note for clients whose reporting currency is not Japanese Yen (JPY)

The following change applies to all reporting currencies. We are currently in deliberations with our tax adviser on the treatment of margin trades in regards to the calculation of cost basis versus non-margin trades in jurisdictions outside of Japan.  In the future, based on the advice of our counsel, we may update our ledger calculations to have a uniform cost basis for both margin and non-margin trades when your reporting currency is not Japanese Yen(JPY).  We will update our documentation and announce accordingly when we have clear guidance.

 

■ The previous method of calculation

Previously, based on a principle that the same currency must be calculated with the same cost basis, as well as considering the consultation from our tax accountant,  margin trades in spot markets adopted the same cost basis as the spot transactions.

 ■ The New method of calculation

Margin trades are calculated with a separate cost basis using FIFO or LIFO per market.

 ■ What you need to do

If you have margin trades in such exchanges as bitfinex, poloniex, kraken, liquid by quoine, coincheck and zaif, please take the following actions:

 

1. Delete the files of those exchanges (bitfinex, poloniex, kraken, liquid by quoine, coincheck, zaif) in our ledger screen,  and upload the trading histories again.

  

DISCLAIMER

As stated in our terms of use, Cryptact has no responsibility in the message above nor the result of the action described above. If you have any questions, please reach out your tax accountant.