Guide on how to report KuCoin crypto taxes in United Kingdom?

Introduction

Are you unsure how to report your KuCoin crypto activities to HMRC? You are not alone. Many people find crypto tax reporting complex. This guide will help you understand the process.

Tax authorities worldwide are improving how they track crypto transactions. This means platforms increasingly share user data with tax administrations.

Waltio simplifies this for you. It calculates your crypto taxes. It also prepares the correct forms. These forms are fully compliant with United Kingdom tax rules.

This guide explains the key steps. It shows you how to report your KuCoin transactions.

What is KuCoin?

KuCoin is a global cryptocurrency exchange. KuCoin EU Exchange GmbH manages its operations in the United Kingdom. Users should check its official registration with the FCA. This includes VASP/PSAN status.

A platform’s local registration status affects automated data sharing. However, it does not change your personal tax duties. You must report your crypto activity in the United Kingdom, whether KuCoin is registered or not.

How does the HMRC know I have crypto on KuCoin?

International efforts against tax evasion have grown stronger. DAC8 regulations are now adopted across the EU. This has boosted international cooperation against tax evasion.

Since January 1, 2026, KuCoin and other regulated platforms have been required to report your full transaction history directly to tax administrations automatically.

Learn more about DAC8 and how it affects you

How are KuCoin transactions taxable in United Kingdom?

In the United Kingdom, HMRC views cryptoassets as property for tax purposes. Profits from selling or exchanging crypto are usually subject to Capital Gains Tax (CGT).

A taxable event occurs when you:

• Sell crypto for regular money (e.g., GBP).
• Exchange one crypto for another.
• Pay for goods or services with crypto.

Profits from these events are called “capital gains.” You pay tax on these gains. You do not pay tax on the total value of your assets. You have an annual tax-free amount of £3,000 for capital gains.

For most individuals, CGT applies to crypto gains above this amount. The rates are 10% for basic rate taxpayers and 20% for higher rate taxpayers. Income from staking or mining is usually taxed as income. It is subject to progressive Income Tax rates from 20% to 45%. Always check the latest HMRC guidance. This will confirm your exact tax situation.

Comprehensive guide to crypto taxes in United Kingdom

How to calculate gains and losses of KuCoin?

For Capital Gains Tax, United Kingdom rules use a specific accounting method. This method involves “Section 104 pooling” and “share matching” rules. These rules determine the “cost basis” of your cryptoassets. The cost basis is the original value of an asset for tax purposes.

Here’s a simple example:

• Scenario: You bought 1 BTC in 2018 for £5,000. You bought another 1 BTC in 2024 for £40,000. In 2025, you sell 1 BTC for £45,000.
• Result (simplified): HMRC rules require you to match sales to purchases in a specific order. First, you match the sold BTC to any bought on the same day. Next, you match it against any bought within 30 days. This is called the “30-day rule.” After these, you use your ‘pool’ of remaining identical assets. The pooled cost is the total cost of all remaining identical assets. This is divided by the number of assets. These specific rules ensure accurate gain or loss reporting.

How to declare staking & earn products from KuCoin?

HMRC usually classifies staking rewards as miscellaneous income. This means you must declare them as income. The tax value is typically the fair market value in GBP, taken at the moment you receive the reward. Check the latest guidance from HMRC regarding valuation.

Airdrops can be seen as income, potentially with a zero acquisition cost, meaning they were received for free. Check the latest guidance from HMRC. Any later sale of an airdrop is typically a capital gains event. Such rewards often create a “double event.” Receiving the reward is Tax Event A (Income). Selling that reward later is Tax Event B (Capital Gain).

How do I declare my gains and losses for KuCoin?

You report crypto gains and losses through your Self Assessment tax return. Individuals use form SA100. They also use the SA108 supplementary page, which is the Capital Gains Summary.

On the SA108, you must detail your total capital gains and losses for the tax year. Include the disposal date, the sale proceeds, and the acquisition cost. HMRC’s Cryptoasset Manual offers detailed guidance. It explains what information to include.

How to Import KuCoin operations into Waltio?

Waltio helps you easily import your KuCoin transaction history. You can connect your KuCoin account. Use API keys or upload CSV export files. This automates the calculation of your tax figures.

📝 Description

This article explains how to connect your KuCoin account to Waltio using the API.
👉 This connection allows you to automatically synchronize your transactions for tax reporting.

⚠️ Warnings

• KuCoin APIs are different from KuCoin Futures APIs. If you only traded in Futures, follow this tutorial.
• KuCoin limits API access to transaction history to 1 year only. Older transactions must be added manually via KuCoin files.
  👉 Example: If you connect to Waltio on 10/12/2023 and create your KuCoin API that same day, the API will retrieve all your transactions from 10/12/2022.
  Transactions before 10/12/2022 must be added manually via KuCoin files, and transactions after 10/12/2023 will sync automatically.
• Transactions related to Spotlight investments must be added manually via a file in Waltio’s format.
• If you delete or change your API keys, it will complicate synchronization.

💡 Recommendations

• Save your secret key and API passphrase carefully, as they will not be provided again.
• Synchronization may take several minutes to several hours.
• You can connect multiple KuCoin APIs on Waltio.

📂 How to access your data

1. Log in to your KuCoin account.
2. In the upper-right avatar menu, select API Configuration.
   
3. Define a key name (e.g., Waltio key) and a passphrase.
   
4. Complete the security verification (trading password, email code, Google/SMS code).
   
5. Confirm via the verification email.
   
6. Save your secret key securely.

📤 How to export your data

• Not applicable via API. Historical data beyond 1 year must be added using KuCoin files.

➕ How to add your data to Waltio

1. Go to Connect my KuCoin API on Waltio.
2. Enter your API key, secret, and passphrase.

Simplify your tax returns with Waltio

Waltio gathers all your exchanges and wallets. This makes your tax reporting easier. Connect your accounts using API or file upload. You can track your crypto portfolio in real-time. Generate United Kingdom compliant tax reports in just one click.

Create your free account today. No credit card or KYC is needed.